State and Local Efforts Cut Red Tape to Stimulate Home Building

As I travel the country, I hear from builders in small towns and big cities, and they all say the same thing: bureaucratic red tape is slowing down the home building industry.

Complex, unnecessary rules and regulations are driving up costs and lengthening build times. Frustrated by the slow pace of construction, builders, local officials, and buyers alike agree we do not have enough housing supply to meet demand.

But after years of watching conversations among local policymakers stall, the past year was different. In 2025, I noticed a shift where state governments stopped debating the issue and instead started to fix it. Even in areas traditionally known for strict regulations, local leaders took advantage of these new state laws to streamline rules and clear the path for housing development.

From legislators forming coalitions to builders leading grassroots efforts, real progress is being made, and efforts and successes offer a roadmap for others to follow.

Building Codes and Construction Standards

Fellow builders often tell me that uncertainty in today’s codes and standards slows their projects. When requirements change mid-project, even well-planned jobs stall.

That’s why California’s recent decision to pause new home building codes for six years stands out. A pause on adopting or amending new home building codes through June 2031, and preventing local changes during that time, directly addresses one of the most common challenges builders face.

Vermont faced a similar challenge with the state’s 2024 Residential Building Energy Standards. The rules had become overly complex and difficult for builders to interpret, which made compliance more difficult and expensive.

But builders there now can follow the state’s 2020 codes, which are more practical and affordable. These adjustments provide stability and have removed uncertainty that often holds up construction.

Zoning Restrictions and Lot Size

Zoning requirements have become a significant barrier to housing affordability, encouraging less-efficient land use and adding costs for builders and buyers. 
These rules, often outdated, shape what can be built in an area and have long frustrated builders I’ve met with at local planning meetings. 

Texas’ decision to reduce the minimum lot size for single‑family homes in its major cities to 3,000 square feet is a significant change. The state also reformed its protest petition process, so a handful of individuals cannot derail needed development changes simply because they don’t want new neighbors.

Other states have taken similar steps to reduce local barriers to new construction. Maine created a streamlined approval process for multifamily projects with four units or fewer, and Montana prioritized mid-rise housing by overriding local height restrictions to allow buildings up to six stories in its larger cities. And in Washington State, local governments no longer require a change-of-use permit to convert commercial buildings into housing.

Together, these changes enable communities and builders to provide sorely needed housing.

Streamlined Approvals and Reduced Bureaucracy

Permitting delays have added months—and sometimes more than a year—to housing projects. Every stalled permit application is a family waiting longer for a home and a builder absorbing extra costs.

In response, Massachusetts shortened its environmental review timelines for housing projects from a year or more to just 30 days. In California, lawmakers have updated the California Environmental Quality Act to streamline permitting. States are recognizing that excess rules slow construction and are finally removing unnecessary hurdles.

Parking requirements are another source of frustration for builders. Montana eased its parking minimums for mid‑rise buildings so units smaller than 1,200 square feet no longer require dedicated spaces, and Washington State limited how many parking spaces cities and counties can require in new developments.

From top to bottom, reduced bureaucracy gives builders more flexibility and enables projects to be completed at lower costs.

Continued Progress in 2026

These regulatory changes may not seem flashy, but after years of watching regulatory reform efforts (and projects) stall, the impact of these policies will be seen in communities across the country.

Clearer rules and easier compliance help homes get built faster, boost housing supply and lower costs for consumers. My goal is to keep this momentum going. States making these changes show what’s possible, and I’ll be encouraging others to follow suit.

As my time as NAHB Chairman comes to a close at the 2026 International Builders’ Show, I’m proud of what we’ve accomplished in the last year to help reform codes and cut bureaucratic red tape. I know my fellow NAHB senior officers will carry this torch and continue to prioritize the necessary changes to help home builders and buyers nationwide.

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