The Evolution of State-Level Zoning Reform
Zoning laws once served to establish and maintain residential neighborhoods in the United States, with single-family zoning becoming predominant in the mid-20th century. These rules were intended to create stable, intentional communities, but they also unintentionally restricted the supply of available housing. Single family housing now makes up 75% of residential land in the United States. With land use dedicated primarily to single-family homes, cities are facing challenges accommodating growing populations, resulting in housing shortages and increased home prices.
As housing crises intensify nationwide, there has been a significant shift in how zoning policies are approached. Traditionally, city and municipal governments held the reins, but states are now stepping in to address the inadequacies of local management. States believe that a broader, more consistent approach is necessary to effectively tackle housing shortages. This shift signifies a growing acknowledgment that localized zoning restrictions can have far-reaching implications, and state oversight may be required to ensure equitable and effective policy changes.
Across the country, there is an increasing understanding that zoning reform is a pivotal piece of the housing affordability puzzle. Experts and policymakers alike argue that outdated zoning regulations have stifled the development of diverse housing options. By abolishing single-family-only zoning and promoting denser, multi-unit housing developments, states aim to create more inclusive communities and alleviate housing pressures. This approach is seen as a key strategy to not only meet current housing demands but to ensure sustainable growth for the future.
Let’s look at some recent changes states are making to help foster density in housing.
Oregon made significant strides in zoning reform with the 2019 legislation that abolished single-family-only zoning. This groundbreaking law was designed to promote housing diversity and alleviate the ongoing housing crisis. The legislation mandated that cities with populations over 2500 were required to allow for the development of duplexes on all single-family residential lots. For cities with over 25000 residents, as well as those within the Portland Metropolitan Area, additional middle housing options such as triplexes, quadplexes, and cottage clusters became mandatory. This approach sought to enhance the overall housing stock and offered a range of living options, catering to diverse needs and preferences. Cities had two years to comply, failing which they would be subjected to a model ordinance dictated by the state.
Central to Oregon's zoning reform is the Goal 10 housing mandate. This mandate requires city comprehensive plans to ensure the long-term provision of affordable housing for all residents, as local governments were not adequately addressing this goal. The new laws compelled cities to rethink their housing strategies, pushing for inclusive and diversified housing developments, as well as quickly adapt their codes to meet these needs within 6 months.
By aligning comprehensive planning with the Goal 10 mandate, Oregon positioned itself as a pioneer, fostering a more sustainable and equitable housing landscape. This reform set a precedent for other states looking to tackle similar housing challenges, emphasizing the importance of strategic planning and inclusive zoning practices. At the same time, it did not provide tools that could have helped cities quickly understand and adapt to these requirements while understanding potential impacts.
Washington State dubbed 2023 the "Year of Housing" as they passed major legislative actions aimed to expand its housing supply as it needs 1.1 million new homes in the next 20 years. Notably, the passage of E2SHB 1110 and EHB 1337 underlines the state's commitment to addressing the ongoing affordable housing shortage.
E2SHB 1110, often referred to as the Middle Housing Bill, requires cities under the Growth Management Act (GMA) to allow a variety of middle housing types, including:
These multifamily housing types are to be implemented in areas traditionally limited to single-family homes. The goal is to foster diverse and affordable residential options, thereby improving urban density.
EHB 1337 mandates that all GMA-planning local governments update their regulations to adhere to new ADU requirements. The bill emphasizes simplifying the development processes for ADUs to increase housing supply without significant overhauls.
Changes to Washington zoning requirements are having huge impacts on construction developers as they look to react to the changing market and city level zoning updates. Ensuring developers understand what is possible and how to get things done is important for cities who need to increase housing options while decreasing prices of development.
Minnesota's proposed zoning reforms aim to eliminate single-family-only zoning to address housing shortages and affordability issues. By enabling the development of multifamily housing on commercial land, Minnesota seeks to increase housing density and expand housing options. This move aligns with the growing trend towards denser, mixed-use developments that cater to diverse housing needs.
Despite the potential benefits, these reforms face significant resistance from local government officials. Concerns about community character, infrastructure capacity, and property values fuel opposition to eliminating single-family zoning. Many local officials prefer maintaining control over zoning decisions, fearing that state-level mandates could undermine local autonomy and community preferences, similar to how Oregon cities have had to make fast decisions without full understanding of impacts.
For states contemplating zoning reform, the diverse approaches of Oregon, Washington, and Minnesota offer valuable insights. The key takeaways include the importance of state-level mandates to drive local compliance, the benefits of streamlined processes for mixed housing projects, and the need to supply local governments with the tools they need to address new legislation. The collaborative efforts between state and local governments are crucial in crafting policies that address specific housing needs while fostering sustainable growth.