Housing Supply, Zoning and the YIMBY Fight — 2026-09-03
California’s legislative session concluded with a slate of housing bills advancing to Governor Newsom, targeting ADU rules and transit-oriented zoning. Meanwhile, new data from France shows a divergence in housing metrics, with construction starts rising 8.9% in July while permits declined, signaling a complex recovery phase. In the US, Michigan’s primary elections have bolstered momentum for state-level zoning reforms, though key packages remain stalled.
Housing Supply, Zoning and the YIMBY Fight — 2026-09-03
Top developments
California legislative session ends with housing package to Newsom
The California 2025-2026 legislative session wrapped up recently, sending a raft of housing bills to Governor Newsom. These bills cover critical areas including Accessory Dwelling Unit (ADU) regulations, permitting disclosures, and transit-oriented zoning changes. The passage of these measures represents a significant step for YIMBY advocates seeking to streamline development processes and increase supply in high-demand areas.
Michigan primary wins bolster zoning reform momentum
Recent primary election results in Michigan are being viewed as a boost for proponents of zoning reforms. While the state has already enacted a $42 million state Low-Income Housing Tax Credit (LIHTC) and single-stair reform, the broader "Housing Readiness Package" remains stalled in committee. The political shift suggests potential future pressure to advance these stalled entitlement and permitting reforms.
France sees construction starts rise despite permit decline
French construction data for July 2026 indicates a rebound in activity that contrasts with earlier trends. Housing construction starts ("mises en chantier") increased by 8.9% compared to the previous period, while building permits fell by 2.5%. This divergence suggests developers are moving forward on existing projects despite a slowdown in new approvals, a pattern closely watched by European housing analysts.
Modular housing faces scaling hurdles despite policy focus
The "ROAD to Housing Act" continues to be a focal point for addressing barriers to modular and factory-built housing. The Act targets regulatory obstacles at HUD and FHA levels, including codes and draw schedules, which have historically hindered the scaling of off-site construction. Despite these policy efforts, the industry struggles to achieve the volume necessary to significantly impact the national shortage.
Local view
In France, local media outlets like Batiweb and Batiactu are highlighting the "trompe-l'œil" (illusion) nature of the current construction recovery. They note that while July saw a jump in starts, the cumulative number of units under construction over the last 12 months (296,131) remains 11.8% below the five-year average. This local analysis emphasizes that the recent uptick is not yet sufficient to reverse the multi-year decline in housing supply.
Context & numbers
- US Completions: According to recent Census data released in August 2026, privately-owned housing completions in July were at a seasonally adjusted annual rate of 1,212,000. Single-family completions stood at 878,000, while units in buildings with five or more units reached 421,000.
- French Permits: In July 2026, 29,577 housing units were authorized for construction in France, marking a slight decline.
- Shortage Estimates: Various estimates persist regarding the scale of the US housing shortage, with some analyses citing a need for approximately 6 million additional homes nationally to meet demand, while others focus on specific affordability gaps ranging from thousands to nearly a million units in states like California.
On the radar
- Census Data Releases: The next revised Building Permits data is scheduled for release on the 17th workday of September, which will provide updated figures on permitting trends following the July dip.
- Oregon Transit Bill: Advocates are preparing for a potential "Homes-Near-Transit" bill in Oregon in 2027, following up on previous zoning reforms.
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