WNY’s Biggest Real Estate Shift Isn’t Rates — It’s Zoning. Here’s What It Means for You. – Western New York's #1 Realtors Serving Lewiston NY and surrounding communities

If you’ve been watching the housing market in Western New York, you may have missed one of the biggest shifts happening quietly: zoning laws are changing — and in many cases, for the better.

For buyers, investors, and homeowners, that means new opportunities: accessory dwelling units (ADUs), smaller lot splits, more flexible multi-unit zoning, and expanded choices. Understanding these changes could give you a strategic advantage when buying, investing, or renovating in 2026.

Here’s what’s new — and why it matters for you.

What’s Changing: More Flexibility, More Options

Accessory Dwelling Units (ADUs) Are Expanding

Many towns and municipalities in Erie County have recently amended zoning codes to allow ADUs — sometimes by right, sometimes with simple administrative approval. For example:

In 2025, Erie County updated its regulations so that single-family detached dwellings (in all residential zoning districts) can now include one ADU — whether attached, internal, or detached.
That means homeowners who want to add an in-law apartment, basement unit, or backyard cottage may now do so legally without the heavy restrictions of the past.
Communities are embracing ADUs as a way to increase housing supply, offer affordable living options, and support multi-generational living.

Lot Splits & Multi-Unit Flexibility Are Improving

Towns like Tonawanda have updated zoning to allow more mixed-residential and multi-family housing through new or amended zones, removing minimum unit-size limits when converting single-family homes to multi-unit.
This means buyers may find more opportunities for duplexes, triplexes, or small multi-unit homes — often at prices comparable to single-family houses — making them attractive for investors or families looking for rental income or flexible living arrangement.

More Permits, Fewer Barriers

The new zoning updates streamline the approval process: many ADUs now qualify under standard administrative permits rather than going through long public hearings or variance processes.
This lowers the entry barrier for homeowners who want to renovate or expand — a major benefit for investors, families looking for extra rental income, or multi-generational households.

What This Means for Buyers & Investors

For First-Time Buyers or Growing Families

You might get more home for your money. A property with an ADU or multi-unit potential can offer rental income, helping offset your mortgage costs.
Multi-generational households (parents, in-laws, grown children) get flexibility: live in one unit, rent the other, or house extended family.
Entry-level cost for multi-unit living may now be lower than expected because many former large-lot properties are being subdivided or converted under expanded zoning rules.

For Investors Seeking Rentals or Multi-Unit Properties

New zoning means more properties are legally convertible to duplexes/triplexes, expanding the pool of viable rental homes.
ADU conversions — basement apartments, in-law suites, stand-alone cottages — can create additional income streams without buying separate properties.
With streamlined permitting, investors can act faster and avoid delays, improving time-to-rent and return on investment.

For Homeowners Considering Sweat-Equity or Expansion

Looking to build an in-law suite, add a cottage, or build a small rental unit on your lot? ADUs might be a legal, viable option now — and a way to increase property value and income.
Zoning flexibility helps adapt to changing family needs (aging parents, adult children, home office + rental income, etc.) without leaving the neighborhood you love.

Things to Watch Out For — Zoning Is Local, Not Uniform

Because zoning laws are controlled at the municipal level, what’s legal in one town may not be in another. Here’s what to check:

Which residential zoning district is the property in (R-1, mixed residential, rural, etc.) — that determines if ADUs or multi-unit conversions are permitted.
Whether permits or special uses are required (some ADUs require special permits, other times they’re allowed by right).
Lot size, parking requirements, setbacks, and minimum lot dimension requirements — especially if subdividing or converting.
Whether the municipality restricts short-term rentals or requires owner occupancy if building an ADU or multi-unit property.

Because rules vary, it’s essential to work with an agent who knows the local zoning — and branches of government — intimately.

How Great Lakes Real Estate Helps You Navigate Zoning Smartly

At Great Lakes Real Estate, we don’t just show homes — we help you see their full potential. Here’s how we guide clients in this evolving zoning landscape:

Local zoning expertise: We track updates across Erie and Niagara Counties so you don’t have to guess what’s legal.
Property suitability reviews: Before you buy, we’ll help you assess whether a parcel qualifies for ADU or multi-unit conversion under local code.
Investor-forward advice: Want to rent or convert? We can estimate potential rental income, conversion costs, and resale value.
Smooth permitting guidance: We help connect you with local planners, contractors, and inspectors — smoothing the path from purchase to permit to occupancy.
Flexible buying strategies: Whether you want a single-family home with flexibility built-in, or a multi-unit income property, we design a plan around your goals.

Why 2026 Could Be a Watershed Year for WNY Real Estate — If You Know Where to Look

Now is a critical moment. With zoning laws evolving and municipalities recognizing the need for more housing flexibility, buyers and investors who move now may benefit from early-mover advantages:

Access to new multi-unit or ADU-enabled properties before competition rises
Potential rental demand increase thanks to housing shortage
Ability to shape remodeling or conversion plans before resale becomes saturated

If you’ve been waiting for a sign — this could be it.

If you’re looking to buy in Erie or Niagara County, want to explore ADU or multi-unit potential, or need a perspective beyond “just another listing,” call Great Lakes Real Estate at (716) 754-2550. We’ll help you understand zoning laws, identify opportunities, and plan your next move with clarity and confidence.