Balancing regulations, affordability

By : J. David Chapman/March 20, 2025

Housing affordability has become one of the most pressing issues in communities across the country.

While land costs, labor shortages, and rising material prices all play a role, one of the least-discussed yet most significant barriers is the growing burden of government regulations.

Few would argue against the need for safety standards in housing and commercial buildings. Building codes ensure that structures are sturdy, energy-efficient, and habitable. However, in many cases, regulations have extended beyond safety, adding layers of complexity, delays, and costs that ultimately drive-up prices.

Zoning laws are a major culprit. Many cities still enforce outdated regulations that limit density, requiring large lots or prohibiting multi-family housing in areas where demand for affordable options is highest. Some communities have been designed around restrictive zoning that prioritizes single-family homes—effectively pricing out middle- and lower-income buyers. Even when cities recognize the need for change, progress is slow.

Then there’s the permitting process, which often turns what should be a straightforward approval into a bureaucratic maze. Developers looking to build affordable housing face a gauntlet of public hearings, neighborhood opposition, and expensive studies—each step adding time and cost to the project. These delays don’t just frustrate builders; they also drive-up rents and home prices for the people who need affordable housing the most.

Commercial real estate faces similar hurdles. Municipalities layer on fees, aesthetic requirements, unrealistic waste container mandates, and infrastructure demands that make small-scale development nearly impossible. Entrepreneurs who might repurpose an existing structure for a new business are often deterred by costly compliance measures that have little to do with safety. And for goodness’ sake, cities need to find a way for their own departments to work together rather than creating additional roadblocks.

Of course, no one wants to live in a home or work in a building that is unsafe. But when well-intentioned regulations become excessive, only large developers with deep pockets can navigate the system, leaving smaller builders behind.

If cities are serious about housing affordability, they must take a hard look at their own rules. Streamlining approvals, modernizing zoning laws, and rethinking excessive requirements could go a long way in making housing and commercial spaces more attainable—without sacrificing safety.

At the end of the day, the goal should be to create communities where people can afford to live and work, not just places where they can afford to comply.

Dr. J. David Chapman is an Associate Professor of Finance & Real Estate at The University of Central Oklahoma (jchapman7@uco.edu)