National Association of REALTORS® Chief Economist Lawrence Yun has consistently raised the alarm about the need to build more housing to help relieve the inventory crunch being experienced in many parts of the country. While a shortage of skilled labor and rising building costs account for some of the problem, builders and developers often have to overcome resistance from current residents who aren’t keen to welcome new construction in their backyards.
That’s why when global market and opinion research company Ipsos approached Yun with the opportunity to track changes in how Americans view housing, he was curious about how developers could combat resistance to new construction. The results of the study have been published in What the Future, a new quarterly series by Ipsos that asks five influential thinkers in a given industry to come up with a data point they’d like to track over the next five to ten years. Yun wanted to know how new approaches to real estate development might turn “not in my backyard” residents into proponents of building additional affordable housing in their neighborhoods.
“Historically it’s the existing residents who have the power through the ballot box and the local land-use regulations. Often it is the NIMBYism that has won out,” Yun told Ipsos. “The conversation has to be changed. This is one way to have the conversation about building homes, because building is needed.”
The research, which Ipsos conducted in August among 2,031 adults, indicates that developers could indeed change some residents’ minds with fairly minimal investments. When respondents were asked about their support for a hypothetical building development that would include apartments or condos, a restaurant, and a gym, 46 percent favored the development. When they were offered a $200 Amazon gift card as an incentive, 46 percent again supported the development, a modest bump of 3 percentage points over the plan without the incentive. When that gift card amount was increased to $1,000, the percentage of respondents who supported the development increased by 15 percentage points. Adding a park or cuts to existing property taxes also boosted support, while discounts at the new restaurant or membership to the gym decreased support.
“Provided that they get something in return—whether it’s a property tax break or a gift card—people are willing to say, ‘Yes we need to build more,’” Yun noted, adding that he was surprised at how small incentives could make a measurable impact. “The reward amount was much lower than I imagined it to be.”
Other panelists featured in the publication include urbanist Richard Florida, Madison, Wis. Mayor Paul Soglin, IKEA Head of Market Intelligence Mary Lunghi, and AARP Director of Livability Thought Leadership Rodney Harrell. Some of the questions posed in the report include, “What makes a great place to live?” and “As people grow older, will their homes support their changing needs?” Ipsos plans to release similar reports on the future of healthcare, transportation, and food.
Source: Are resident incentives the key to solving affordable housing? (Nov. 2017) GenPop magazine
