03/28/2024

Opinion: Two cheers for NIMBYism

Politicians, housing advocates, planners and developers often blame the NIMBY — “not in my backyard” — lobby for the state’s housing crisis. And it’s true that some locals overreact with unrealistic growth limits that cut off any new housing supply and have blocked reasonable ways to boost supply.

But the biggest impediment to solving our housing crisis lies not principally with neighbors protecting their local neighborhoods, but rather with central governments determined to limit, and make ever more expensive, single-family housing. Economist Issi Romem notes that, based on the past, “failing to expand cities [to allow sprawl] will come at a cost” to the housing market.

A density-only policy tends to raise prices, turning California into the burial ground for the aspirations of the young and minorities. This reflects an utter disregard for most people’s preferences for a single-family home — including millennials, particularly as they enter their 30s.

In California, these policies are pushed as penance for climate change, although analyses from McKinsey & Company and others suggest that the connection between “sprawl” and global warming is dubious at best, and could be could be mitigated much more cost-effectively through increased work at home, tough fuel standards and the dispersion of employment.

Of course, cities and regions should be able to produce high-density housing which appeals to many younger people, particularly before they get married or have children. The small minority who prefer to live that way later in life should be accommodated on a market basis.

But density is not an effective way to reduce housing costs in a metropolitan area. Multifamily urban housing, notes Portland State University economist Gerard Mildner, costs far more to build than single-family homes. For example, the median cost for a room in major metropolitan areas is more than $100 more expensive near the urban core than it is on the periphery.

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