Zoning for the Future: The Policy Shift That Could Bring Gen Z Home

One of the most direct ways public policy can address the housing affordability crisis for Generation Z is by reforming local zoning codes to permit diverse, higher-density housing options. Exclusionary zoning practices, such as single-family-only districts, have historically restricted the development of duplexes, triplexes, and accessory dwelling units (ADUs), all of which offer more affordable entry points into the housing market. Updating zoning codes to allow these forms of “missing middle” housing can significantly expand supply without requiring substantial new infrastructure investments. Municipalities in places like Minneapolis and Portland have made strides in this area by eliminating single-family zoning or legalizing ADUs citywide, providing models for other jurisdictions to consider (Glaeser and Gyourko 2018)¹.

These zoning reforms should be paired with streamlined permitting processes to reduce development delays and costs. Many municipalities inadvertently discourage small-scale development through unpredictable and opaque permitting systems. Policy changes that establish clear timelines, objective criteria, and permit-by-right pathways for certain housing types can make it easier and faster to bring new units to market. This is particularly important for first-time developers and community-based organizations that may lack the resources to navigate prolonged approval processes. Local governments can also create pre-approved building plan libraries for ADUs or small multifamily units, reducing design costs and regulatory uncertainty for would-be builders (Been et al. 2019)².

Leveraging Local Land and Public-Private Partnerships

Municipal governments often control underutilized land that can be strategically deployed to expand housing access. Cities can use surplus public land to support affordable housing development through long-term leases, land trusts, or discounted sales to mission-driven developers. When paired with requirements for affordability and mixed-income integration, these strategies can help create new housing opportunities close to jobs, transit, and amenities, especially in high-demand urban centers. In Los Angeles, the city has successfully initiated joint development projects on Metro-owned land to build transit-oriented affordable housing, a model that aligns transportation and housing goals (Florida Housing Coalition 2020)³.

Public-private partnerships (PPPs) are also essential for expanding housing supply without relying exclusively on municipal budgets. Cities can structure incentives, such as density bonuses or reduced parking requirements, in exchange for a percentage of affordable units in new developments. These incentives must be carefully calibrated to ensure they are financially viable for developers while still delivering public benefit. Transparent metrics, periodic program evaluations, and community engagement are critical to maintaining trust and effectiveness in these arrangements. Done right, PPPs can help bridge the financing gaps that often make affordable housing projects difficult to pencil out (Schuetz 2020)⁴.

Supporting First-Time Homebuyers Beyond Traditional Loans

While HUD and USDA loan programs serve an important function, they do not sufficiently address the structural barriers young buyers face, such as down payment accumulation and student loan debt. Municipalities can consider establishing local down payment assistance programs funded