US zoning laws will continue to hinder homebuilding

Significance

US housing costs, especially in cities that are hubs for technology or finance, have been rising sharply over the past decade. Housing affordability is at a 40-year low, with California being the worst-affected state as local zoning regulations continue to limit construction opportunities.

Impacts

• Attempts by California’s governor to exempt semiconductor factories from environmental review may be extended to other sectors.
• Clean energy projects could receive a major boost if environmental reviews take account of positive impacts on climate change.
• Federal legislation is unlikely to impact local zoning rules, but financial incentives may be able to speed environmental reviews.