The Letton

2026: The Year of Housing Affordability?

A question increasingly being discussed: what happens if the federal government pushes local municipalities to meaningfully adjust zoning regulations? While it may sound unlikely, it is very much part of the broader national conversation—and Atlanta would not be immune.

2025 has been a year of normalization and nuance. Interest rates, while higher than the historic lows of prior years, have settled into a more predictable range—allowing both buyers and sellers to plan with clarity rather than react to volatility. At the same time, Atlanta’s employment landscape has remained notably strong, driven by continued corporate investment, population growth, and the city’s expanding role as a national business hub. These fundamentals continue to support long-term housing demand, particularly in the upper tiers of the market.

As with most policy debates, the loudest voices often sit at the extremes. In Atlanta, this tension is already visible. Areas like Midtown and portions of Buckhead have embraced higher density along key corridors, while historic and legacy neighborhoods—Ansley Park, Morningside, Brookwood Hills, and parts of Buckhead Village—rightfully protect their scale, architecture, and long-term character. The answer, as usual, likely lives somewhere in between: context-driven zoning that respects neighborhood identity while allowing for thoughtful, incremental growth.

The risk of sweeping upzoning is not theoretical. Poorly conceived density increases can lead to out-of-scale, architecturally indifferent projects that do little to enhance a neighborhood—and in some cases actively diminish surrounding property values. When that happens, assessment appeals often follow, reducing the local tax base and shifting the burden elsewhere. The notion that municipalities will simply offset this through spending efficiencies is, historically, optimistic at best.

Atlanta undeniably needs more housing—particularly for middle-income professionals, families, and essential workers who increasingly find themselves priced out of intown living. But supply alone is not the goal. Quality, design, and livability matter. A city that grows without regard for aesthetics and cohesion risks more than visual appeal; it risks its desirability to residents, employers, and visitors.

There are smart, Atlanta-specific tools that can move the needle without sacrificing long-term value. Selective density increases along MARTA corridors, thoughtful development near the BeltLine, and adaptive reuse in areas like West Midtown and along Peachtree Street can add meaningful housing while reinforcing walkability and neighborhood vitality. Accessory dwelling units, where appropriate, can provide flexibility without altering the fabric of single-family neighborhoods. Reduced parking minimums in transit-served areas can encourage smarter land use without overwhelming residential streets.

Not every neighborhood needs high-rise towers. Ansley Park does not need vertical density to remain one of Atlanta’s most coveted addresses. But could certain corridors, nodes, and underutilized commercial zones accommodate modest increases in height and scale—paired with strong design standards and community input? Absolutely.

The opportunity in 2026 is not radical transformation. It’s calibrated progress—growth that enhances Atlanta’s livability, preserves long-term property values, and ensures the city remains both economically competitive and deeply desirable for years to come.