The Mercatus Center published a list of 16 policy recommendations designed to help states clear local obstacles for housing construction.

“As the economy responds to a rapidly changing world, state legislatures can ensure that their housing markets are a source of economic strength and opportunity,” argues an article by Salim Furth and Emily Hamilton for the Mercatus Center, a conservative nonprofit think tank at George Mason University.
The article assumes that states have power to set rules and provide incentives that can help deliver the housing to meet demand in high-cost parts of the country (the post acknowledges that state power comes with some limitations, such as not being able to control the price of lumber). Noting recent legislation in Oregon (i.e., 2021’s SB 458), Utah (i.e., 2021’s HB 82), and Connecticut (i.e., 2021’s HB 6107), the article suggests several approaches for states to preempt local zoning laws and help loosen the regulations in high-demand markets.
The article proposes several categories of reform, with specific actions in each for 16 specific recommendations in all. More details are included in the source article, linked below.
Direct Limits on Local Regulation
- Permit Accessory Dwelling Units
- Limit Parking Mandates
- Cap Minimum-Lot-Size Requirements
- Permit Light-Touch Density
- Allow Transit-Oriented Development
Streamlining Procedures
- Reform Protest Petitions
- Allow Neighbors to Waive Setbacks
Fiscal Innovations
- Make Community Benefit Agreements Fair and Predictable
- Allow Ohio-Style Tax Abatements for Residential Reinvestment
- End “Inclusionary Zoning” (More on why Hamilton thinks Inclusionary Zoning" is harmful to housing outcomes ca be heard in a recent "Cityspeak" podcast by Urbanize.)
Narrowing the Scope of Zoning Authority
- Adopt the Property Ownership Fairness Act
- Block Zoning That Makes Existing Conditions Illegal (i.e., non-conforming uses)
- Protect “Build to Rent”
Updating Construction Standards
- Allow HUD Code Manufactured Housing without Redundant Local Inspections
- Eliminate Aesthetic Mandates and Materials Bans
- Allow Skinny Apartment Buildings
The article does not mention allowing affordable housing residential development by-right on commercial-zoned lots, such as proposed by a California law, AB 2011, approved by the California State Legislature in August and awaiting the governor’s signature.
FULL STORY: Housing Reform in the States: A Menu of Options for 2023

Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?

King County Supportive Housing Program Offers Hope for Unhoused Residents
The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

Researchers Use AI to Get Clearer Picture of US Housing
Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

Making Shared Micromobility More Inclusive
Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
planning NEXT
Appalachian Highlands Housing Partners
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie