The Hidden Cost of Housing Restrictions in Greenville County
The Hidden Cost of Housing Restrictions in Greenville County
Greenville County has experienced a decade of fast-paced growth, attracting new residents, businesses, and investment. But in 2025, development has slowed sharply, not because demand has fallen, but because new regulations, policy changes, and uncertainty are making it harder to build.
At Hill Development, we believe well-planned housing growth is essential for affordability, opportunity, and a healthy local economy. Limiting housing supply through shifting rules and delays ultimately leads to higher home prices, increased rents, and a less competitive region.
Regulatory Uncertainty Around the UDO
In late 2024, Greenville County adopted a Unified Development Ordinance (UDO) to streamline zoning rules and reflect its comprehensive plan. But within weeks, the UDO was paused for revisions. Now, developers are left in limbo, unsure which rules apply or how long approvals will take.
Key Takeaways:
- Developers and lenders hesitate to move forward without clear standards
- Permitting and investment decisions are being delayed
- Planning staff are tied up revising code instead of reviewing projects
Moratoriums on Cluster and Open-Space Development
The County has temporarily halted approval of cluster and open-space subdivisions, citing concerns about density and rural character. But many of these layouts are used to preserve land while building cost-effective homes in growing areas. The moratorium affects more than just clustered projects, since it diverts staff attention and policy focus.
Key Takeaways:
- Cluster housing allows efficient development with green space
- The moratorium freezes a major segment of the market
- Even unrelated projects face delays due to limited review capacity
Environmental Compliance Adds Time and Cost
New stormwater regulations are now in effect, requiring more complex engineering, longer review cycles, and higher upfront costs. While managing runoff and water quality is important, the changes make marginal or smaller sites harder to build on.
Key Takeaways:
- Tougher requirements increase design and permitting costs
- Project timelines are extended, especially for smaller builders
- Some sites that were previously buildable no longer pencil out
Sewer and Septic Capacity is a Growing Constraint
Sewer access is limited in some key growth areas, and the County is increasingly cautious about approving new septic-based subdivisions. Until infrastructure expands or new solutions are funded, many projects remain stalled.
Key Takeaways:
- Some growing areas lack sewer capacity for new development
- Septic-dependent subdivisions face higher scrutiny
- Builders are limited in where they can deliver new homes
Rural Development Faces More Pushback
Longstanding debates around rural conservation rules have resurfaced as the County revisits how to manage density and land use outside urban cores. These unresolved issues create legal risk and public resistance that slow down even modest proposals.
Key Takeaways:
- Uncertainty around rural rules affects land planning
- Organized opposition adds risk for rural or edge-of-city sites
- Density assumptions from past years no longer apply consistently
Navigating City vs County Regulations
Inside Greenville city limits, a separate code aligned with the GVL2040 plan offers more predictability, though it is more design-intensive. Outside the city, the County's UDO is still in flux, creating a patchwork of standards that can be difficult for builders to navigate.
Key Takeaways:
- Two overlapping codes in one metro area increase complexity
- Developers must adjust plans and timelines depending on jurisdiction
- Smaller firms may struggle to meet shifting requirements in both areas
What This Means for Housing Affordability
These combined challenges add friction to nearly every stage of development. Delays, engineering requirements, code revisions, and moratoriums all make it harder to bring new homes to market. And when housing supply falls behind demand, the result is higher prices.
What’s at Risk:
- Fewer affordable and workforce housing options
- Rising prices for both buyers and renters
- Slower job growth and reduced economic competitiveness
- A regional market that becomes less accessible to young families and first-time buyers
Moving Forward
At Hill Development, we support responsible growth, strong environmental standards, and community input. But we also believe that clear, consistent, and timely regulations are essential for a healthy housing market. Greenville County must align its land use policies with its economic goals to remain affordable and attractive.
If you're considering a project or investment in the area, we're here to help you navigate this evolving landscape and identify areas of opportunity.
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