Discretionary Municipal Approvals Inflate Housing Costs by Hundreds of Thousands – How cities can fight high housing costs

Municipal discretionary approvals add hundreds of thousands to housing costs before construction.

Austin Zwick, a policy studies expert at Syracuse University, found that discretionary planning approvals in North American cities increase housing costs and reduce housing supply. This structural issue in urban governance plays a significant role in the ongoing housing crisis.

Zwick’s research, highlighted in Urban Governance, uses Vancouver as a case study to show how planning-related delays and negotiations inflate costs by hundreds of thousands of dollars per dwelling unit before building starts. He argues that replacing case-by-case negotiated approvals with clear, predictable by-right standards would eliminate delays and unpredictability. According to Zwick, such reforms have political feasibility, as Vancouver’s early changes suggest improved outcomes. The process involves auditing planning codes to identify discretionary ordinances that hinder housing development and substituting them with automatic approvals once compliance is demonstrated.

Local governments might consider beginning audits of their planning codes to streamline housing development.

Montana municipalities, with their distinct regulatory environments and development patterns, could see similar cost and supply impacts if they rely heavily on discretionary approvals. Streamlining these processes might offer Montana communities a path to alleviating housing pressures without expanding land use or increasing construction costs. Montana’s mix of urban and rural governance challenges might influence how a shift toward by-right approvals could affect the state.

How cities can fight high housing costs
By Daryl Lovell – Syracuse U., Futurity