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States Revise Building Codes, Boost Affordable Housing Supply

Araverus Team|Wednesday, June 17, 2026 at 5:20 PM

States Revise Building Codes, Boost Affordable Housing Supply

Araverus Team

Jun 17, 2026 · 5:20 PM

Affordable Housing · Building Codes · Housing Supply · Multifamily Development

Affordable HousingBuilding CodesHousing SupplyMultifamily Development

Key Takeaway

Relaxing single-stair building codes directly reduces construction costs and increases housing supply, particularly for mid-rise multifamily developments. This means increased profitability for residential real estate developers focusing on "missing middle" housing and a potential easing of rental market pressures in affected urban areas. For investors, this signals opportunities in construction materials, urban development funds, and companies specializing in efficient, code-compliant building solutions.

States and cities are actively reforming building codes to permit single-stair multifamily construction, aiming to expand affordable housing options and increase supply, with 19 states already introducing or passing relevant legislation or commissioning studies.

This reform targets "missing middle" housing, allowing for increased density and lower construction costs, particularly for smaller developers. Minnesota's recent study, funded by its legislature and approved by its Construction Codes Advisory Council, provides technical backing for allowing single-stair buildings up to six stories, provided strict fire safety guardrails are in place.

These guardrails include full sprinklers, rated corridors, tight limits on dead-end corridors, strong smoke detection, and essential elevators for taller buildings. The shift, already enacted in states like Colorado, Texas, Montana, and New Hampshire, and cities such as Los Angeles and Nashville, reflects a broader trend of scrutinizing building codes to enable density increases.

Dallas, for example, adopted an ordinance applying residential International Building Code to multifamily construction up to eight stories, reducing costs for smaller projects. This policy change directly increases usable residential space per level, making family-sized units feasible on tight infill lots, thereby addressing housing shortages and affordability challenges.

The Minnesota study establishes a model for other jurisdictions to follow, ensuring safety while promoting housing growth.

Read More On

One thing nearly everyone can agree on: The housing shortage is too great to not take actionwsj.comSingle-stair multifamily codes trend as states lean into affordability - HousingWirehousingwire.com

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