The housing sector is important for achieving ambitious environmental targets. In the European Union, buildings account for 40% of energy consumption and 36% of CO2 emissions. Considering the scale of the housing sector’s environmental impact, interventions in how new housing is built and existing housing is renovated have great potential for sustainable transformation. However, the sector has not been timely in implementing energy-efficiency measures, as it has a conservative culture with established actor roles that require renewal, and a lack of interest in environmental issues. Drawing on the identified literature, this article reviews the research examining the interactions of property-owning and property-developing actors with municipalities. Particular attention is paid to the utilization of dialogue processes in projects targeting sustainable urban development. Based on the reviewed literature, this article identifies barriers to and enablers of such dialogues, as well as the factors that promote their success. The study finds that the following research avenues should be explored further: the causality between innovation and dialogue processes; the mobilization of interests among stakeholders; the links between dialogue and consensus; the effects of socio-cultural context on dialogue and project outcomes; and the impact of process leadership on dialogues.