North Carolina Governor Josh Stein signed Senate Bill 445 into law on August 11th, a regulatory overhaul that could slash manufactured home prices by as much as $10,000, according to a report published by Americans for Tax Reform. The legislation, introduced by Senator Steve Jarvis, marks the second housing reform passed this summer in one of the nation's fastest-growing states. The law cuts bureaucratic obstacles and broadens opportunities for new housing construction across multiple categories.
The new law removes the state mandate requiring manufactured homes to include a permanent steel chassis, the metal framework that makes transportation easier. Scrapping this requirement is projected to lower manufactured home construction costs by up to $10,000, with those savings passed along to buyers. The legislation also requires cities and towns with populations exceeding 50,000 to approve permits for accessory dwelling units—guest houses, carriage houses, and in-law suites. Local governments can no longer block these structures through minimum lot size mandates, prohibitive fees, or denial of utility hookups. Additionally, SB 445 establishes a residential right-of-use provision that stops municipalities from preventing commercial-to-residential property conversions through special discretionary approvals or required public hearings. The law also blocks local height restrictions below 60 feet.
The report notes that North Carolina currently faces a 764,000-unit housing shortage, driven by construction failing to keep pace with rising demand. According to the analysis, a similar residential right-of-use reform enacted in Texas resulted in the creation of 8,400 new units. The report states that research consistently shows height limits drive up apartment costs and significantly harm housing affordability, particularly in areas where land carries a premium price. The legislation extends vested property rights—which allow developers to complete approved projects even after new regulations pass—from two years to five years, with local governments permitted to extend them up to eight years when conditions warrant.
The report argues that regulatory barriers have created the conditions for North Carolina's housing gap, and that without action, rising costs will slow the state's population growth as prospective residents choose other destinations. Height restrictions and zoning obstacles reduce efficient land use, the analysis explains, while unstable property rights discourage developers from operating in the state. By removing these chokepoints, the report contends, North Carolina positions itself to meet growing demand by enabling more construction across manufactured homes, accessory units, and converted commercial properties.
The report concludes that North Carolina's reforms address the fundamental challenge: housing supply hasn't matched demand in a state experiencing a population boom. By securing developer certainty through extended vested rights, eliminating costly manufacturing mandates, and preventing local governments from blocking construction through discretionary barriers, the state has created the framework to build the necessary housing. The bottom line is clear—cut the red tape, and more homes get built.