Opening Lines – Local Government Staffing Shortages Threaten Housing Development, Experts Say

April 30, 2026

Source: www.smartcitiesdive.com, Ryan Kushner, Editor, First Published October April 14th, 2026

Nearly 38% of local government employees are expected to retire within the next five years, one study found.

The U.S. faces a 1.2 million housing unit shortfall, according to NAHB estimates, and the residential construction workforce lost more than 41,000 jobs in 2025. NAHB forecasts a continued workforce slowdown, exacerbating high housing construction costs.

More than 70% of planning professionals surveyed by the International Code Council last year cited resource and staffing shortfalls as a barrier to operating under mandated permitting deadlines.

As cities address housing shortages, some have incorporated artificial intelligence into their permitting processes and bolstered their online systems in an effort to speed up timelines.

Representatives on the America’s Housing Comeback Advisory Group, which includes the National League of Cities, said collaboration among builders and local governments is key to mitigating housing planning and approval delays.

“Strengthening these public-private partnerships is key to improving efficiency and easing cost pressures for residents,” Hannah Olsen, NLC program manager of housing and community development, wrote in the panel summary.

 

 

 

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