Could the “YIMBY” movement solve America’s affordable housing shortage?

Could the “YIMBY” movement solve America’s affordable housing shortage?

More and more American cities and states are starting to say “yes, in my backyard” as they struggle to meet the housing needs of a growing population.

The “YIMBY” movement is a political effort to address poverty in the country. housing shortage By increasing the supply of housing through strategies such as changing zoning codes and other regulations that limit housing density. According to the national nonprofit Up for Growth, the United States is millions of homes short of demand.

Minneapolis resident Bernice Duncan was looking for a new home with more space for more than five years. The telehealth professional works from home in a cramped two-bedroom apartment she shares with her two adult sons.

“Not everyone is able to move around freely, like you would in a home or, you know, having your own office space,” Duncan said.

Over the years of searching, property values ​​skyrocketed. With a monthly housing budget of $1,600, she says she was priced out of the market.

“It’s a struggle,” Duncan said. “As the economy continues to grow, your wages don’t,” she added. “You’re not going to pay less than $2,000.”

Say “yes” to more housing

Twin-Cities YIMBY was created in 2023 to advocate for policies that will generate more affordable housing Options for people like Duncan. The group supports eliminating zoning restrictions to allow for greater housing density in the Minneapolis area.

“Over the last five years, our median home price has increased by $100,000, which is a huge increase,” said Paige Kahle, a real estate agent who founded Twin Cities YIMBY with colleagues Nichole Hayden and Meghan Howard.

YIMBYs have formed a coalition of housing advocates across the country to counter the “not in my backyard” voices, known as NIMBYs.

“I think it’s getting easier. But literally, when you go to community meetings, city council meetings, planning commission meetings, there are always NIMBYs who are very vocal and very organized and often a little angry because they don’t want this kind of housing around,” Kahle said.

But without a plan to bring housing costs Kahle says shortage hurts at home buyers and tenants even.

“They’re spending 50 percent of their income, 60 percent of their income on housing, which is just not sustainable,” she said. “We need more housing and we need it fast,” Kahle said. “Traditionally, we’ve solved the housing crisis by giving subsidies, massive subsidies to lower the cost of housing for people. But there’s just not enough subsidies in the world to do that. So we really need to look at other mechanisms to increase density and lower the cost of housing.”

Minneapolis 2040: The City Plan

Addressing these concerns is the goal of the Minneapolis 2040 Comprehensive Plan. Passed in 2018, this ambitious bipartisan bill implemented historic zoning reforms to increase the supply of available housing, including:

  • The elimination of zoning reserved for single-family homes to allow the construction of duplexes, triplexes and fourplexes in all neighborhoods.
  • Minimum heights for new residential buildings in high-density areas.
  • The elimination of minimum parking requirements for new residential development projects.

The project has encountered opposition from some homeowners who believe increased density could harm the character and charm of single-family neighborhoods.

“Plan 2040 will undermine the unique character and architectural heritage of many neighborhoods,” one opponent said at a 2018 city planning commission meeting.

Implementation of the plan was suspended in 2022 after environmental groups filed a lawsuit claiming the plan could have serious unintended environmental consequences. In May, a The state appeals court ruled to lift an injunction on the plan, and last month the Minnesota State Supreme Court denied a motion to reconsider the objections, clearing the way for the plan to proceed.

“People want a place where they can live, [where] “They can afford to raise their family, it’s safe and affordable. So it’s really part of the regional debate as well as the national debate,” said Alene Tchourumoff of the Minneapolis Federal Reserve.

Over the next decade, the Minneapolis Fed will use multiple data sources to track the economic impact of these changes under the 2040 plan.

“We really wanted to get a deeper understanding of the effects of policy change, recognizing that these major policy changes in housing often take a long time to actually manifest themselves,” Tchourumoff said.

The early data is promising. Between 2017 and 2022, nearly 21,000 new housing units were approved in Minneapolis, most in buildings with 20 or more units, according to a report by the Pew Charitable Trust. At the same time, rents in the city increased by just 1%, far less than in the rest of Minnesota, where rents increased by 14%.

Deregulation across the country

While Minnesota lawmakers are considering expanding these rezoning reforms statewide, other states like California, Oregon, Massachusetts, and Montana have already implemented similar YIMBY policies.

The changes in Minneapolis are already making a difference for residents like Rebecca Hemmans, who became a first-time homeowner at age 67 after looking at nearly 100 listings.

“I dreamed of living in a single-family home and sitting on my porch with my lemonade table and glasses for the neighbors to greet,” Hemmans said.

To fit her budget, she chose to adjust her dream: instead of a single-family home, she bought a semi-detached townhouse, and she’s happy with the compromise.

“I don’t have to ask the landlord if I can do this or that?” she said. “If I want to paint my walls orange, I can do that.”