The affordable housing crisis in the U.S. is worsening, according to a recent report by the Joint Center for Housing Studies of Harvard University. Various factors contribute to the rise in cost-burdened homeowners and renters, but experts agree that limited supply is keeping housing prices high.
Strict zoning ordinances in most cities are often cited as the main barrier to new housing construction. The YIMBY (“Yes In My Backyard”) movement, which garners support across the political spectrum, aims to relax zoning laws nationwide.
Local governments have responded with zoning reforms, such as allowing ADU development in many cities. However, some research indicates these reforms have a limited impact on housing supply, and developers highlight the ongoing regulatory hurdles.
According to a report from the National Multifamily Housing Council (NMHC) and the National Association of Home Builders, recent changes to standard building codes have significantly increased multifamily development costs over the past decade. An NMHC survey found that 89% of developers, builders, and operators believe building codes affect the cost and feasibility of new projects.
This complex issue lacks a straightforward solution. Building codes are crucial for ensuring the health and safety of residents. Repealing them entirely could lead to unsafe living conditions and further reduce housing supply due to quality concerns. While building codes aren't inherently costly, local governments are questioning whether newer updates, including energy efficiency and aesthetic standards, add unnecessary costs without delivering sufficient benefits.
The challenges vary by market, but we've identified six key issues with building codes impacting housing affordability:
Lack of Flexibility in Building Codes: Standard building codes that don’t account for local climate, market, and building type nuances can hinder affordability. For instance, applying the same fire safety standards to small and large apartment buildings imposes unnecessary costs on small building developers. While some states have uniform codes without local amendments, the flexibility to adapt to specific threats and conditions could reduce costs.
Mismatched Rollout of Codes and Materials: The International Code Council updates building code standards every three years, but developing new materials to meet these standards can take longer, leading to inefficiencies and delays in development.
Labor Union Requirements: Unions often resist technology that reduces the need for skilled labor. This resistance can inflate costs and slow down the adoption of more cost-effective construction processes.
Affordability Not Prioritized: Recent building code updates focus on energy efficiency and quality standards, which can increase costs. While these standards have long-term benefits, they may deter developers in the short term, especially for affordable housing.
Material Requirements: Building codes may restrict the use of affordable recycled materials, limiting options for developers and increasing costs.
Code Enforcement Issues: Disagreements between city inspectors and contractors can delay development, especially in urban markets with significant regulatory burdens. These hurdles make development less appealing, exacerbating supply shortages in high-need areas.
Despite these challenges, building codes are essential for ensuring safe and healthy housing. Rather than discarding them, we need to refine them. Policymakers should focus on research, technological tools to assist local governments, and standards that reflect housing development innovations to improve affordability while maintaining safety.
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