Zoning Reform and Housing Shortage

Zoning Reform and the Push to Solve the Housing Crisis

The U.S. Conference of Mayors recently partnered with the American Institute of Architects to survey local leaders across the US on housing. Unsurprisingly, the majority reported serious affordability and supply challenges—and most believe the problem will get worse without major reforms.

While it’s unclear which Lowcountry mayors participated, housing affordability is absolutely a concern here in Savannah. Just last month, Savannah City Council took a step forward by updating zoning laws to allow multifamily housing in areas where it was previously restricted. The change is limited to certain neighborhoods and comes with conditions, but it’s a move in the right direction to boost housing supply.

Why This Matters

When housing supply can’t keep up with demand, prices and rents rise—plain and simple. And building affordable housing is no easy task. If it costs $200,000 to build a home but it sells for only $220,000, the margin often isn’t worth the risk. That’s why many cities are turning to zoning and land use reforms. In fact, 80% of the mayors surveyed say they’re actively working on such changes.

Here are a few practical reforms cities are embracing—some of which Savannah has started implementing:


Common Zoning Reforms That Boost Housing Supply

1. Accessory Dwelling Units (ADUs)
Carriage houses, tiny homes, and backyard cottages fall into this category. These units add density without changing the character of a neighborhood.

2. Increased Density Limits
Savannah’s recent zoning update allows developers to build multifamily where only single-family homes were allowed before. That flexibility can make projects financially viable.

3. Reduced Parking Requirements
Strict parking minimums can kill infill and multifamily projects, especially in space-constrained urban areas. We’ve personally seen promising projects stalled because the lot couldn’t accommodate enough parking spaces.

4. Streamlined Permitting
Long permitting delays discourage development. A city that makes it hard to build will eventually lose its best builders. Smoother processes mean faster housing starts—and fewer empty lots.

5. Allowing Manufactured Housing
Modern manufactured homes are far more attractive and durable than their reputation suggests. They’re also much more cost-effective. For many Americans, they’re the only realistic path to homeownership.

6. Legalizing Co-Living and Room Rentals
With high prices and interest rates, many landlords can’t cover costs with a single-tenant lease. Room rentals allow tenants to save while owners increase income—helping both sides of the housing equation.


Conclusion

The national housing shortage is estimated at over 4 million units—and growing. It’s encouraging to see Savannah take meaningful steps to address the crisis. Zoning reform isn’t the only answer, but it’s a critical piece of the puzzle.

At Home Buyers of Savannah, we support smart, flexible policy that promotes housing affordability while maintaining neighborhood character. We’re encouraged by the city’s recent actions and hope to see continued progress.

sources:
https://www.wtoc.com/2025/04/24/affordable-housing-approved-four-savannah-neighborhoods/

https://agenda.savannahga.gov/content/files/exhibit-1-affordable-housing-overlay-district-ahod-zoning-map-amendment-staff-report-file-no-25-001546-za.pdf

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