New Castle County’s new ‘pocket housing’ ordinance offers a solution to Delaware’s affordable housing crisis

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For some residents in New Castle County, a family of four crams into a one-bedroom apartment, unable to afford larger accommodations as rent rises faster than wages.

For many Delawareans, the dream of securing a comfortable, affordable home remains just out of reach. Soaring housing costs, limited inventory and outdated development models have left families struggling to find solutions that fit their needs.

But a new county ordinance in Delaware’s most populous, northernmost county aims to change that. By embracing the concept of “pocket housing,” the county has introduced a bold approach creating smaller, community-centered homes that prioritize affordability and sustainability.

A plan rooted in community input

The ordinance, passed in mid-December, stems from the county’s comprehensive development plan, a 500-page document shaped by years of community outreach and participation.

“The comp plan itself had recommendations for creating more by-right housing, affordable housing projects and that’s really the genesis of where this came from,” said Charuni Patibanda, the general manager of New Castle County’s Department of Land Use. “We were all so inspired by other projects that were proposed in New Castle County that would essentially incentivize starter homes to be built and just more affordable housing by essentially lowering the cost of the related infrastructure.”

Pocket housing stands apart from traditional developments by clustering compact homes around shared open spaces such as courtyards or gardens. These neighborhoods eliminate the need for sprawling roads and driveways, reducing costs while fostering a stronger sense of community.

“It allows for growth densities that are higher than what is allowable today,” Patibanda said. “The neighborhoods are little groups of smaller detached housing units that are oriented around a common open space like a courtyard, a garden, a walkway and it’s intended to create smaller scale housing.”

Patibanda also pointed to existing models as inspiration. “There’s about 12 of [these homes] in Bellefonte … clustered around a common open space. That’s a great example of what a pocket community is and what we’re trying to achieve.”

Addressing a housing crisis

The ordinance also addresses Delaware’s severe affordable housing shortfall. According to the state’s housing authority, thousands of units are needed to meet demand, and New Castle County lags in production.

The pocket housing ordinance includes provisions for moderately priced dwelling units in developments over 25 homes, ensuring that affordability remains central to these projects.

“We expect them to be more affordable just right off the bat. And there’s an additional moderately priced dwelling unit requirement. If a pocket neighborhood goes above 25 units, then we actually require the developers or the home builders to set aside a certain percentage of that project to be what we call [Moderately Priced Dwelling Units]. And that’ll go into the county’s MPDU program, which is administered by the Department of Community Services.”

This initiative is part of a broader strategy that includes expanding accessory dwelling unit allowances and passing redevelopment legislation to convert underutilized properties into mixed-use housing. These combined efforts aim to provide a wider array of housing options for working families across the county.

With the ordinance now in place, the Department of Land Use hopes developers will seize the opportunity to bring pocket housing projects to life. While Patibanda acknowledges this initiative alone won’t solve Delaware’s housing crisis, she sees it as a meaningful step forward.

“Our vision is to see these communities take shape over the next five to 10 years,” she said. “We think these little neighborhoods will be very beneficial to Delawareans.”