Housing Supply, Zoning and the YIMBY Fight — 2026-10-01
California Governor Newsom signed major housing legislation including SB 1116 to expand starter homes and townhome development, while French building permits edged down in August even as construction starts rebounded. Across North America, modular housing manufacturers are scaling up production, and cities from Santa Monica to Omaha are advancing upzoning and parking-minimum reforms.
Housing Supply, Zoning and the YIMBY Fight — 2026-10-01
Top developments
California's SB 1116 Expands Starter-Home Zoning Rules
Governor Newsom signed SB 1116 on September 29, strengthening the Starter Home Revitalization Act by expanding access to townhomes and condominiums, limiting setbacks and story caps for qualifying 10-home projects. The bill aims to streamline approvals for smaller multifamily developments that can compete with single-family housing on timelines and cost.

French Building Permits Edge Down, Starts Rise for Third Straight Month
In August 2026, French housing permits fell 1.1% month-over-month to 29,749 units, while construction starts jumped 4.1% to 27,663 units—marking the third consecutive monthly rise. Despite the permit decline, starts remain above their five-year average, signaling builders are gaining confidence on previously approved projects.

Nunavut Opens First Modular Housing Factory
NGen and Sakku Innovative Building Solutions (SIBS) celebrated the official grand opening of Nunavut's first modular housing manufacturing facility in Arviat on September 30. The facility represents a major expansion of factory-built housing capacity in Canada, addressing regional supply constraints.
Santa Monica and Omaha Advance Parking and Upzoning Reforms
Santa Monica City Council voted to upzone 89 single-family parcels near the Expo/Bundy light-rail station to increase density compliance with state housing law, while Omaha's City Council is considering eliminating parking minimums for residential developments—a reform advocates say will reduce housing costs and support affordability.
Local view
French media emphasize the fragility of the construction recovery. Idéalista and Le Revenu note that while August starts show momentum, housing authorizations remain roughly 10% below the five-year mean, signaling continued structural challenges despite policy announcements. SeLoger reported that the government's "Relance et décentralisation du logement" bill—adopted by the Senate in July and now at the National Assembly—aims to accelerate permitting and strengthen local authority powers, though implementation timelines remain uncertain.
California YIMBY praised Newsom's September 29 housing bill package, noting SB 1116 removes regulatory friction for starter-home projects and positions townhome development as a cost-effective alternative to single-family zoning.
Context & numbers
U.S. Housing Completions (August 2026):
Privately-owned housing completions reached a seasonally adjusted annual rate of 1,128,000 units in August, with single-family completions at 816,000 units (down 10.4% from July's revised 911,000). Multifamily completions (five+ units) stood at 344,000 units.
Canada's Projected Shortfall:
Canada Mortgage and Housing Corporation (CMHC) forecasts a long-term deficit requiring 187,000 to 238,000 new units annually through 2036.
U.S. Shortage Estimates:
Major think tanks estimate the U.S. overall housing shortage at 6 million units, though estimates vary: the National Low Income Housing Coalition (March 2026) identified a 7.2 million-unit gap for extremely low-income renters.
On the radar
- October state legislative deadlines: Several U.S. states have housing reform bills in final committee review; outcomes expected before October 15.
- French ZAN law implementation: The "Loi ZAN" (zero-net-artificialization) continues reshaping local master plans (PLU/SCoT); compliance deadlines near for 2031 target.
- Modular capacity expansion: Plant Prefab and other prefab manufacturers are ramping factory output; production bottlenecks expected to ease over Q4 2026 as new facilities come online.
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