The shift toward evidence-based policymaking in U.S. urban planning has underscored the need for robust institutional frameworks and reliable data systems to inform housing and land-use decisions. Yet, despite decades of reform, significant disparities persist in how local governments generate, interpret, and apply evidence to urban policy, particularly in diverse and underrepresented communities. This systematic review, conducted in alignment with PRISMA 2020 guidelines, examines the institutional and data-related barriers that constrain evidence-based urban planning in the United States. Literature searches were performed across five major databases, Scopus, Web of Science, Urban Studies Abstracts, Google Scholar, and PubMed, covering the period 2003–2026. A total of 30 studies meeting the inclusion criteria were reviewed, encompassing empirical, theoretical, and policy analyses. Data extraction and thematic synthesis focused on institutional capacity, data governance, and policy translation. Four major themes emerged: (1) institutional fragmentation and weak coordination across planning agencies that limit policy coherence; (2) persistent data gaps and poor interoperability of geospatial and administrative data systems; (3) inequitable representation of diverse communities in both datasets and decision-making structures; and (4) limited translation of research evidence into actionable policy due to inconsistent quality assessment and knowledge integration mechanisms. The findings highlight that institutional reform, open data infrastructure, and equity-centered governance are essential for advancing evidence-based urban planning. Strengthening interagency collaboration, standardizing urban data frameworks, and embedding inclusive data practices can enhance planning transparency and policy responsiveness across U.S. municipalities.