FWIW the traditional path for renovations was to add "sweat equity" by doing the work yourself, slowly and without permits. You can still do this today, perhaps even more effectively than previously with Youtube videos/LLMs. Although you might need to hire more "handymen" to replace what would have been bartered labor with friends/family (tying back to the social capital concept of the article).

(I'm not trying to detract from the thrust of your comment though! I'm describing a dynamic of coping rather than sustaining)

The flipside is a lot of municipalities have become a lot more aggressive about enforcement, and changing regulations (especially regarding gas and electric) and manditory inspections mean that there's less that you can get away with.

IMHO, municipalities are much more serious about these permits and, at the same time, neighbors seem even more sensitive to any kind of noise or even a visual disturbance. If your house is close to the street, good luck keeping any kind of renovation off your town's radar.