The New Wave of Housing: How Zoning Changes Are Making Communities Healthier, Greener, and More Affordable

Across the United States, a quiet revolution is happening in housing policy. From rural towns to urban centers, communities are rewriting zoning codes to allow for smaller homes, “missing middle” and modular housing, and the elimination of parking mandates. The goal? To create housing that is more affordable, more sustainable, and better for human well-being.

What’s Changing

For decades, zoning laws in most U.S. towns and cities prioritized single-family homes on large lots. While this created a certain neighborhood aesthetic, it also drove up housing costs, increased sprawl, caused health issues, and limited housing choices. Now, many communities are taking a different approach:

• Allowing Smaller Homes – By lowering minimum square footage requirements and allowing smaller lots, towns are opening the door to cottages, micro-homes, modular, and other efficient housing types. These homes cost less to build, require less land, and use less energy to heat and cool

• Welcoming Missing Middle Housing – Duplexes, triplexes, townhomes, courtyard apartments, and other mid-density designs are being legalized in areas once zoned exclusively for single-family houses. This “middle” option fills the gap between large apartment complexes and stand-alone homes, making neighborhoods more diverse, affordable, and walkable

• Eliminating Parking Mandates – Requiring a set number of parking spaces for each new home can add tens of thousands of dollars to construction costs and take up valuable land. By removing or reducing these mandates, towns make it easier to build affordable housing while encouraging walking, biking, and public transit

Missing Middle housing, reduced parking mandates, gardens, and walk/bike spaces.

The Benefits Go Beyond Housing Costs

These zoning changes aren’t just about affordability—they’re about creating communities that work better for people and the planet.

• Lower Environmental Impact – Smaller homes and higher-density neighborhoods use less land and preserve green spaces. They also reduce the need for long commutes, which cuts greenhouse gas emissions

• Reduced Energy Use – A smaller living space simply takes less energy to maintain, leading to lower utility bills and a smaller carbon footprint

• Better Mental & Physical Health – Denser, more walkable communities encourage daily movement and make it easier for people to connect with neighbors. Having parks, shops, and services within walking distance can reduce isolation and increase quality of life

Communities Leading the Way

Cities like Minneapolis, Portland, and Burlington have gained national attention for eliminating single-family-only zoning, but smaller towns are joining in. Rural areas facing worker shortages are realizing that affordable, varied housing options are essential to keeping their communities vibrant.

Major Cities & Regional Leaders

Portland, Oregon

In 2020 and 2022, Portland enacted its Residential Infill Project (RIP) and RIP2, allowing duplexes, triplexes, fourplexes, cottage clusters, and ADUs on most single‑family lots—well beyond the previously limited allowances under HB 2001.

Portland also abolished parking minimums citywide, enabling more homes without requiring off‑street parking.

Minneapolis, Minnesota

With its Minneapolis 2040 plan, the city eliminated single‑family‑only zoning citywide—allowing missing‑middle housing types across all neighborhoods.

The same plan removed all municipal parking mandates, giving developers greater flexibility.

Sacramento & Bay Area Cities (California)

In Sacramento, as part of its 2040 General Plan (implemented in March 2024), the city removed parking minimums citywide and allowed small apartment buildings (up to 3 stories) in former single‑family zones.

Nearby cities—San Francisco, San Jose, Culver City, Emeryville, Alameda, and Mountain View—have all repealed parking mandates under AB 2097 or local policy between 2018‑2024.

In Berkeley, the city council unanimously voted in June 2025 to end its century‑long single‑family zoning and legalize 3‑story buildings with up to eight units per lot across most of the city, with parking loosened accordingly—effective November 2025.

Small Towns That Lead Parking Reform

Port Townsend, Washington (pop. ~10,000)

Eliminated parking minimums entirely, becoming perhaps the smallest U.S. municipality to do so, and exemplifying leadership in low‑density settings. Also active in broader missing‑middle zoning movements in Washington state.

Bandera, Texas (pop. ~671)

Completely eliminated parking mandates in 2021 and adopted parking maximums and shared‑parking rules to better support more flexible land use and housing options while preserving town character. Though mostly a parking reform, Bandera is emblematic of small towns rethinking outdated zoning constraints.

County & Suburban Regions Embracing Missing Middle

Montgomery County, Maryland

The proposed “More Housing Now” initiative would permit duplexes, triplexes, townhouses, and small apartments in formerly single‑family zones, with a quota for workforce‑rate housing—alongside loosening parking requirements in many zones.

Durham, NC ● Charlotte, NC ● Raleigh, NC

These North Carolina cities are moving toward permitting missing‑middle housing types (duplexes, triplexes, townhouses) broadly across single‑family residential zones, with associated reductions to parking mandates in transit‑adjacent areas. In Gastonia, NC, local parking reforms align with statewide trends—House Bill 369 would eliminate minimum parking standards statewide, complementing local zoning relaxations.

Lots more here on Strong Towns.

Why These Reforms Matter

These jurisdictions are demonstrating how zoning reform can support affordable, compact housing while saving land, reducing energy use, and encouraging walkable, healthier communities. Removing parking mandates makes development cheaper and greener. Allowing missing-middle housing boosts supply without sacrificing neighborhood scale or design quality.

Want help figuring out your next fast, sustainable, and attainable project? Let’s talk.

#sustainableliving #sicbs #developers #containers #modularconstruction #shippingcontainerhomes #womanowned #steelframebuilding #affordablebuilding #navypiermarina #greenbuild #chicago #strongtowns