How State Legislatures Can Help America Build Again

Americans are feeling the effects of regulatory regimes that have made it too difficult to build. Housing has become less affordable, businesses have faced uncertain approval processes, and energy infrastructure permitting remains long and complicated. As they prepare for new legislative sessions next year, state legislatures should make the removal of barriers to construction and investment a priority.

Housing unaffordability does more than strain household budgets. High mortgage rates and rising rents reduce economic and social stability, which in turn reduces consumer spending, undermines workforce stability, and makes it more difficult for businesses to compete for talent. There is currently a national housing shortage of 4 to 7 million homes. To help solve this problem, states should adopt automatic approval for projects that comply with existing zoning regulations. Automatic approval would not eliminate local rules but simply require that, when builders follow them, the government cannot delay approval indefinitely.

This kind of housing reform works because it relies on clear rules rather than political discretion. Builders, homeowners, and communities all benefit when rules are clear and understood in advance. The U.S. Chamber of Commerce has identified burdensome permitting processes and outdated zoning rules as part of the broader housing supply problem.

Permitting reform should apply beyond housing. Businesses and entrepreneurs often face complicated and burdensome processes to get their business off the ground, including issues with expensive compliance costs, slow bureaucratic processes that lack transparency, and complex regulatory processes. A centralized permit transparency system would allow applicants, agencies, and the public to follow their approvals in real time, identify bottlenecks, and eliminate duplicative permits. A strong proposal from the American Legislative Exchange Council requires a permit audit, a public online portal, and annual efficiency reports.

Virginia is an excellent example of a state that has worked to improve transparent and efficient permitting by creating an online permitting portal. The portal initially applied to environmental permits but has since expanded to track permits from two additional state agencies, with plans for further expansion. It tracks permits across various agencies in real-time, sets target timelines, automates workflow functions, and provides performance data. Virginia can serve as a model for other states facing similar issues.

In addition to the housing and business sectors, the energy industry also badly needs clarity and transparency. New manufacturing facilities, data centers, homes, and businesses all depend on reliable energy infrastructure. States should to create clear statewide processes and firm timelines for energy facility approvals.

States can make building easier. Slow or unpredictable approval processes mean that valuable projects remain stuck on paperwork while costs continue to rise. State legislatures can change this reality by replacing unnecessary delay with clear rules and dependable timelines, clearing away the barriers that keep projects from moving forward.