NC faces a housing crisis. What are lawmakers doing about it? And will it make a dent?
North Carolina is struggling to build enough housing for its surging population, and state lawmakers are scrambling.
This legislative session, dozens of bills have been proposed to encourage developers to boost supply — making it a standout year for regulatory reform bills, observers say.
At last count, the N.C. Housing Coalition is tracking roughly 120 bills, said Stephanie Watkins-Cruz, its director of housing policy.
“It’s obvious to everyone, no matter what party or part of the state, that they can’t run away from this issue,” she said. “We feel momentum.”
Among current proposals: a cluster of bipartisan bills to expand statewide “missing middle” housing — like duplexes, townhomes and accessory dwelling units (ADUs) — in single-family neighborhoods.
State lawmakers are also exploring allowing housing development “by right,” without the need for a permit, in any area currently zoned for commercial use, NC Newsline first reported.
Housing advocates celebrated the news.
“BOOM — four bipartisan bills,” Carolina Forward, a progressive think-tank, posted on X on March 25.
“The [bills], taken together, demonstrate a growing consensus that North Carolina’s housing crisis needs to be taken seriously. It’s time to act.”
But the bills’ supporters are also expecting pushback.
In recent years, missing-middle policies have sparked lawsuits across the country. In Raleigh, some residents fear overcrowding, increased traffic and changes to the look and feel of their neighborhoods.
Christian Anastasiadis, chief operating officer for McConnell Golf, is suing the city of Raleigh’s over its 2021 “missing middle” housing reforms.
“This is pure upzoning without citizens’ involvement,” he said in March.
Observers say it’s tricky trying to predict which, if any, of these bills will become law. Historically, local governments have successfully opposed regulatory reforms that restrict their authority.
Here’s a look at what six key bills could mean for the housing market.
What are NC legislators proposing to boost housing supply?
This session, the state legislature is exploring dozens of bills that could boost supply and impact affordability.
They include four bills filed by Sen. Tim Moffitt, a Henderson County Republican and Sen. Julie Mayfield, a Buncombe County Democrat.
Among them:
- Senate Bill 497 would expand missing-middle housing statewide. That includes allowing denser housing formats (up to six-plexes and townhomes) in any area zoned for single-family houses. It would also prohibit local governments from discouraging development through “unreasonable costs or delay, including zoning, development, siting, or design review standards,” the bill states.
- Senate Bill 499 would allow housing development by right in any area currently zoned only for commercial, office or retail use. The bill would also allow the conversion of a building or part of a building from commercial to residential use.
- Senate Bill 495 would permit ADUs statewide. It also blocks local governments from prohibiting the use of the ADU for long-term rentals.
- Senate Bill 492 would allow single exit-stairways in apartment construction of up to eight stories.
Separately, the House of Representatives has proposed several other housing-related bills. Among them:
- House Bill 626, filed by Rep. Gloristine Brown, a Pitt County Democrat and called the Housing Choice Act, would permit, by right, multifamily residential development in municipalities with under 100,000 residents. It would also waive construction-related fees for low- and moderate-income housing, allowing accessory dwelling units, and offer first-time homebuyer education programs.
- House Bill 369, filed by Rep. Donnie Loftis, a Gaston County Republican and Rep. Allison Dahle, a Wake County Democrat, would restrict local governments from requiring a minimum number or size of off-street parking spaces and to clarify the limits of local stormwater requirements for redevelopment sites.
Would housing reform even make a dent of difference?
Even with a post-pandemic construction boom, the number of households in the state is projected to increase by 5% (218,160 households) between 2024 and 2029, according to analysis by Bowen National Research.
The result: an estimated housing gap that will grow to 764,478 units — 322,360 rental units and 442,118 for-sale units, the report found.
The report, commissioned by NC Chamber, North Carolina Home Builders Association (NCHBA) and NC Realtors, has spurred calls for reform.
“The numbers don’t lie. We need to do this,” NCHBA’s executive vice president Tim Minton said in April.
But questions remain over the state’s power to seize more zoning power from local governments. It’s also still unclear if such policies even work, at scale.
“It’s hard to get the mix right,” said Eric Maribojoc, a UNC professor who focuses on affordable housing. “Other jurisdictions have tried to do similar legislation but haven’t seen the corresponding production.”
Ultimately, he said, success depends on what restrictions are allowed to remain. “You may be giving with one hand, but sort of restricting with another.”
Eric Braun, founder of RaleighForward and a retired land-use and litigation attorney, said there’s “no magic-bullet” solution. However, he believes these reforms would lead to more inventory. That would “eventually make housing more affordable across the state,” he said.
This story was originally published April 29, 2025 at 7:00 AM.
