Decades ago, Americans could choose their homes by browsing catalogs from Sears and other retailers.
Now, communities across the country are using a similar approach to encourage construction of more affordable homes as housing costs skyrocket and builders can’t keep up with growing housing demand. Communities offer menus of pre-approved, architect-designed home plans, sometimes called sample books, from which builders and property owners can choose, knowing in advance that they will be acceptable to local authorities.
The plans, offered free or for a small fee, can help save up to $10,000 in upfront development costs by speeding up the process of obtaining a building permit, according to a new report from the Pew Charitable Trusts.
That may not sound like much, but since the average cost of building new homes nationwide is about $428,000, every little saving can help. Pew noted that pre-approved or “approval-ready” plans are viewed as a relatively easy way to shorten administrative timelines by weeks or even months, thereby helping to reduce costs. One expert told Pew the program is similar to “TSA PreCheck” for home builders.
“Every month of delay creates additional costs that ultimately fall on the buyer,” said Alex Horowitz, project director for Pew’s Housing Policy Initiative.
With pre-approved plans, builders may be able to pass on their savings to buyers or renters, Mr. Horowitz said. Communities could also update their regulations on issues such as changing minimum lot sizes and relaxing parking requirements to reduce construction costs and encourage more home construction, the Pew report said.
Otherwise, local governments would have little control over most of the factors that affect housing costs, such as interest rates and material costs, said Matthew Petty, chief executive of Pattern Zones, an urban planning firm in Fayetteville, Arkansas, that helps communities streamline permitting processes.
“But,” he said, “they can have a direct impact on approval.”
These “promising, if modest” initiatives are spreading as concerns about housing supply and affordability grow, according to Pew. Dozens of communities have adopted preapproved plan programs, including Claremore, Oklahoma, a small town near Tulsa; Kalamazoo, Mich.; and South Bend, Indiana. Plans can include single-family homes as well as duplex and triplex structures – buildings with two or three separate homes under one roof – and even small apartment buildings.
The plans are particularly helpful for smaller developers who are more likely than large firms to build on vacant lots in established neighborhoods, the report said.
Pre-approved plans can also help accelerate disaster recovery plans. Communities in Southern California, for example, are using them to help homeowners rebuild homes lost in wildfires.
What are “Pre-Approved” House Plans?
Cities and towns typically require builders to submit detailed design plans and blueprints for new homes so they can be sure the structures meet local zoning and safety codes. The traditional review process can sometimes take weeks or even months, depending on the complexity of the project and the size of a community’s planning staff.
But by pre-screening designs and giving them a stamp of approval, local governments can cut through the red tape and get started building the homes they need more quickly. (Builders generally still need to submit a separate site plan showing where the building will sit on the property.)
Edward Erfurt, senior technical adviser at Strong Towns, a nonprofit that promotes dense, walkable neighborhoods as more sustainable than suburban sprawl, said pre-approved designs could help reduce risk for small developers. “It increases predictability.”
Matthew Loos, a civil engineer starting his first project as a developer in Rogers, Arkansas, said the city’s recent availability of free, pre-approved townhouse plans was a factor in his decision to move forward because it saved planning costs.
“I don’t know if I would have moved forward with the project if I didn’t have that option,” he said. “There’s often uncertainty. You don’t know exactly whether everything will be okay.”
While professional developers and builders can use the plans, they are also available to residents who want to build their own homes on land they buy or inherit, said Kyle Clifton, Claremore’s director of planning and development. Some approvals for the pre-designed plans could be issued within 24 hours, he said.
Why are delays so costly for home builders?
Long project approval times can discourage home construction and drive up costs for both buyers and renters, Pew reported. Developers incur additional costs, including interest payments, insurance and property taxes, while they wait for approvals.
Details vary by location, but Pew cited a study in Washington state that found each month of delay in the permitting process increased the building’s cost by 1 percent. Another study, a 2022 analysis by the Citizens Budget Commission, a New York think tank, found that permitting delays in New York City could increase the cost of a mid-rise apartment building by $50,000 per unit.
An analysis by the National Association of Home Builders estimates that for every additional $1,000 a home costs, more than 115,000 households can no longer afford that home.
How common are pre-approved building plan programs?
Pew found at least 40 communities that offer them. Many small and medium-sized cities in particular are enthusiastic about the idea because they are in a difficult situation, said Horowitz. They see local demand for affordable properties, but construction costs have risen so much that developers are finding it difficult to build profitably. Reducing uncertainty and shortening the approval process is one way to reduce costs, he said.
Several states have passed laws encouraging the adoption of preapproved plans, and Congress is also interested in this approach. Bipartisan housing legislation currently under consideration would include grants to local governments to adopt pre-vetted designs. On Wednesday, Republicans and Democrats in the House of Representatives voted to pass the bill. It Despite it requires Senate approval before it can be sent to President Trump.
Is there resistance to pre-approved plans?
New developments are sometimes stymied by homeowners because they have been given the derogatory title “NIMBY,” meaning “not in my backyard.”
But a 2023 Pew poll found — somewhat surprisingly, Mr. Horowitz said — that 86 percent of the public supported changes to speed up approval processes. Officials say pre-approved plans may face less opposition because the plans are designed to blend in with surrounding homes.
Rebekah Kik, assistant city manager in Kalamazoo, said residents can be confident that a property using a pre-approved plan would fit into their neighborhood, so they tend to be more accepting. “People can see what it looks like,” she said.
How can I find out if my city offers pre-approved plans?
Typically, programs offer a selection of plans that builders and potential buyers can view online. (Local governments purchase or license access to the plans, effectively subsidizing costs for builders.) Some programs offer just a few options, while others offer dozens. Some make the plans available citywide, while others limit them to certain neighborhoods. To find out if your city offers pre-approved plans or permit-ready homes, try an online search. Or call your local building department or community development office.
Are pre-approved “accessory dwelling unit” plans available?
In many cases yes. Accessory dwelling units (ADUs) have become increasingly popular as a way to increase housing supply, particularly through the addition of smaller homes in established neighborhoods. ADUs are smaller structures, such as a backyard home or carriage house, that are built next to a single-family home or as an addition to the main home.
More than a dozen states have passed laws allowing the construction of ancillary equipment. California requires local governments to submit pre-approved plans for this. New York City recently released a series of pre-approved ADU plans.