US states pass housing reforms to increase construction

Lawmakers in about one-third of US states, including North Carolina, Idaho, New York, and Kansas, passed housing policy reforms in 2026.

These legislative changes aim to address housing shortages, high rents, and homelessness by making it easier to build various types of homes. The new policies encourage the construction of apartments, starter homes, and accessory dwelling units. Some states also updated rules to allow nonprofits and churches to build on land they already own.

The reforms focus on streamlining the development process by simplifying building codes and reducing administrative barriers. Many of these changes also prioritize building housing near commercial areas. Bipartisan groups of lawmakers and diverse coalitions led these efforts based on the belief that housing issues result from policy choices that states have the power to change.