How environmental laws are killing America's housing supply

Published in House and Home on Monday, August 25th 2025 at 8:23 GMT by Los Angeles Daily News
^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

Environmental Regulations, Housing Shortage, and the Looming Affordability Crisis

The United States is in the midst of an unprecedented housing crunch, with the American Housing Survey reporting that nearly a quarter of U.S. households cannot afford a home that meets their needs. A new piece in the Daily News traces a surprising culprit behind the crisis—an expanding web of environmental regulations that, according to industry insiders, is strangling the very supply of homes that could alleviate the shortage.

The article opens by juxtaposing the rhetoric of the Biden administration’s “Climate Action Plan,” which promises a “carbon‑free” economy by 2050, with the stark reality on the building front. The piece quotes a senior policy analyst at the Urban Land Institute, Dr. Aisha Rahman, who points out that “while the climate goals are laudable, the mechanisms to reach them are choking developers, especially in states with already tight land supplies.”

The Regulatory Landscape

The Daily News explains how a confluence of federal, state, and local rules has become a “regulatory labyrinth” for new construction. The centerpiece of the discussion is the National Environmental Policy Act (NEPA), which requires federal agencies to conduct environmental assessments before approving projects that might affect the environment. The act is usually seen as a safeguard for communities and ecosystems, but the article points out that for developers, NEPA can mean months of environmental studies, public comment periods, and costly mitigation plans—particularly for projects that span multiple states or that sit in high‑risk floodplains.

In addition to NEPA, the Environmental Protection Agency (EPA) has rolled out a series of “Best Management Practices” for stormwater runoff and air quality. “These are meant to protect local water bodies and reduce smog, but they also add a layer of permitting that small‑to‑medium builders find hard to navigate,” explains former EPA administrator James Patel, quoted in the piece.

State‑level rules exacerbate the problem. California’s “Housing and Infrastructure Act of 2020” was intended to streamline approvals for large projects, but the state’s stringent coastal zone regulations and the recent California Coastal Commission’s tightening of setback requirements for new homes have stalled dozens of developments in the San Francisco Bay Area. Similarly, Washington’s “Floodplain Management Rule”—updated to reflect new flood‑risk data—has effectively halted construction in the Puget Sound suburbs, according to a local housing nonprofit.

The Human Cost

The article brings the regulatory headache to life by following the journey of two families in different parts of the country. The first is the Patel family of Des Moines, who have been on the housing waiting list for two years. “We’re living in a cramped rental and paying rent that’s higher than the median income,” says Maria Patel, the daughter of former EPA administrator James Patel. The second is the Johnson family in Charleston, who are frustrated by the long delays on a planned apartment complex that could have provided dozens of affordable units.

Both families point to a single pain point: “We can’t get the approval to build in the right place because the paperwork is overwhelming.” Their stories underline the “human face” of what the Daily News calls an “administrative bottleneck.”

Economic Impact

To quantify the issue, the Daily News cites a report from the Department of Housing and Urban Development (HUD) that projects a $150 billion cost to developers from environmental compliance over the next decade. The piece also references a study by the Brookings Institution, which estimates that each additional month of permitting can increase a project’s cost by 2–4%. For developers already struggling to break even, those extra dollars can mean the difference between moving forward or pulling the plug.

The article also highlights the ripple effect on housing prices. Because supply is constrained, demand continues to outpace it, driving up rents and home prices. “If developers can’t get approval quickly, it only fuels the market’s upward spiral,” argues Dr. Rahman. She cites data showing that neighborhoods with the highest regulatory burdens see rents 15% higher than the national average.

Possible Solutions

The Daily News ends on a hopeful note by exploring a few policy alternatives. One is the creation of a “fast‑track” environmental review process for projects that meet strict climate‑performance thresholds—such as net‑zero energy use and the use of recycled materials. Another is the expansion of “green‑building” incentives that could offset the costs of compliance.

The piece quotes Senator Michael Thompson (D–Washington), who has introduced a bipartisan bill to streamline flood‑plain permitting for low‑to‑mid‑income projects. “We can protect the environment without sacrificing the right to a decent home,” Thompson says.

In addition, the article calls on the federal government to provide a clearer framework for environmental compliance that differentiates between truly high‑impact projects and those that fall within normal urban development parameters. “We need a system that protects communities and the planet but doesn’t turn every new house into a regulatory minefield,” says Patel.

A Broader Context

Linking out to the EPA’s own policy memo on climate‑risk assessments, the Daily News points readers to an explanatory chart that lists the most common environmental permits required for new residential projects across the U.S. The chart shows that in states like Oregon, 70% of new developments require a “land‑use assessment” in addition to the standard permits—a fact that is often overlooked by developers and policymakers alike.

Finally, the article draws a line to the national debate on the role of the federal government in housing policy. It notes that while the U.S. Supreme Court has recently struck down some state zoning restrictions as unconstitutional, the tide of environmental law remains a separate, albeit related, frontier that will shape the housing market for years to come.

In a nutshell, the Daily News piece argues that well‑intentioned environmental regulations—while essential for protecting ecosystems and mitigating climate change—have become an unintended bottleneck in the housing supply chain. The result is higher construction costs, delayed approvals, and an accelerating housing affordability crisis that threatens millions of Americans. The story is a sobering reminder that policy design must carefully balance environmental stewardship with the imperative to provide safe, affordable homes for all.

Read the Full Los Angeles Daily News Article at:
[ https://www.dailynews.com/2025/08/14/how-environmental-laws-are-killing-americas-housing-supply/ ]

Vacationing with Children can be Easy!

Rental of high quality Baby Gear & Beach Equipment, Delivered to Wherever You Are!

N※N

Vacationing with Children can be Easy!

Vacationing with Children can be Easy!

Vacationing with Children can be Easy!

Vacationing with Children can be Easy!

Vacationing with Children can be Easy!