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There’s no silver bullet to increase housing supply. But given the U.S. is millions of units shy of where it needs to be to meet demand, the worst thing is to do nothing, a panel of experts said during the Regulatory Issues and Trends Forum at NAR NXT, The REALTOR® Experience, in Boston.
“It’s a high-stakes game of musical chairs,” said Phil Crone, vice president of Leading Builders of America, which seeks to preserve housing affordability for American families. “Without missing-middle housing, eventually those on the lowest rung will be pushed out of town entirely, which is happening in California and coming to Texas.”
Contrary to what’s been floated politically on the national stage, opening federal lands to development isn’t a likely solution, said Edward Glaeser, the Fred and Eleanor Glimp Professor of Economics at Harvard University. “You’ll give up land on the edge without solving affordability.”
And with the exception of Clark County, Nev., which has so far purchased 20 acres of federal land to build more than 200 affordable single-family homes for Las Vegas, this land isn’t necessarily where people want to live. Consider the millions of miles of federal land in Alaska, Crone said: “You’re going to be one of very few people to want to go there.”
All three panelists emphasized the problem is “hyperlocal;” NAR says the federal level should provide support broadly without doing harm or stifling local development.
Yet, even local solutions face pushback. Massachusetts’ MBTA Communities Act requires localities to increase zoning for multifamily housing near transit stops, noted Kathleen Heyer, an associate with Pierce Atwood LLP in Boston, where she specializes in land use litigation. But while some localities in the state have implemented the rule, others are opting to keep their laws status quo.
So, what can be done, especially considering the fierce headwinds of NIMBYism?
- Fund technological improvements with grants. The length of time it takes to get through the permitting process in many municipalities has become excessive, the panelists noted. Technology solutions could help speed the process, but strapped localities can’t afford bells and whistles. Crone said government grants could enable municipalities to arm inspectors with iPads to do inspections in real time. Or AI could eventually be used to identify electrical code issues simply by training a camera on an electric panel, Crone said.
- Achieve economies of scale. Building productivity in the U.S. inverted over the 20th century. In the early part of the century, building was effective in terms of scale, and then projects and companies got smaller, Glaeser said. “The only thing that works is mass scale, and the way to do this is with manufactured housing.” Building at scale will also better enable new technologies, he added.
- Develop the construction workforce. Schools need to offer shop classes and other education kids are interested in rather than focusing on standardized tests, Crone said. “Trades are a great way to make a living, and right now, [tradespeople] can’t find apprentices.” “We also need younger people coming up so we can keep our housing stock from crumbling around us,” Heyer added.
- Real estate pros can lend their voice. Glaeser recommended supporting political leaders who are pro-growth. Crone advised being cautious about tariffs, which could negatively impact housing production costs and raise prices for consumers. And Heyer said, “When there’s a town meeting about new housing, show up and explain to neighbors it’s not the end of the world and it’s worth doing. And if there is a zoning change, be there to support it. The folks who don’t want change are very loud.”
