Could the "YIMBY" Movement Solve America's Affordable Housing Crisis?

 

As U.S. cities and states face growing populations, more are embracing the "YIMBY" ("Yes, In My Backyard") movement as a potential solution to the affordable housing shortage. This political effort aims to increase the housing supply by advocating for changes to restrictive zoning laws and other regulations that limit home density. According to "Up for Growth," a national nonprofit, the U.S. is millions of homes short of meeting demand.

Take Bernice Duncan, a Minneapolis resident, for example. For over five years, she has searched for a larger home to accommodate her telehealth job and her two adult sons. Her $1,600 monthly housing budget, however, has been stretched thin, with property values skyrocketing. "It's been a struggle," Duncan said, noting, "As the economy continues to grow, your paycheck doesn't." She’s now priced out of the market, with homes costing no less than $2,000 a month.

The rise of YIMBY

In 2023, Twin Cities YIMBY was founded to advocate for policies that would make housing more affordable for residents like Duncan. The group pushes to eliminate zoning restrictions and allow higher-density housing throughout the Minneapolis area. "In the past five years, our median housing price has increased by $100,000," said Paige Kahle, a realtor and one of the founders. This growing coalition of YIMBYs works to counter "NIMBYs" ("Not In My Backyard"), who oppose developments near their homes.


Kahle points out that without solutions to reduce housing costs, both homebuyers and renters suffer, often spending over half their income on housing. "We need more housing, and we need it quickly," she emphasized. While subsidies have traditionally been used to address the housing crisis, Kahle believes there aren’t enough subsidies to make a significant impact. Instead, she argues for increased housing density as a way to drive down costs.

Minneapolis 2040 Plan

Minneapolis is addressing the housing shortage through its ambitious Minneapolis 2040 Comprehensive Plan, passed in 2018. Key zoning reforms include allowing duplexes, triplexes, and fourplexes in all neighborhoods, setting height minimums for new residential buildings, and eliminating minimum parking requirements for new developments. Some homeowners, however, oppose these changes, fearing they may erode the character of single-family neighborhoods.


Despite opposition, the 2040 Plan moved forward after a legal challenge over environmental concerns was resolved in 2023. The Minneapolis Federal Reserve is monitoring the long-term economic effects of these policy changes, and early data is promising. Between 2017 and 2022, Minneapolis permitted nearly 21,000 new housing units, mostly in larger buildings, while rent increases in the city were just 1%, compared to a 14% rise across the state.

Expanding YIMBY Reforms

Minnesota is considering expanding its zoning reforms statewide, joining other states like California, Oregon, Massachusetts, and Montana, which have already implemented similar YIMBY policies. The reforms are already making a difference for Minneapolis residents like Rebecca Hemmans, who, after viewing nearly 100 homes, became a first-time homeowner at age 67. While she had always dreamed of a single-family home, Hemmans purchased a townhome instead, finding satisfaction in the compromise.


"I don't have to check with the landlord to ask, 'Can I do this or do that?'" Hemmans said. "If I want to paint my walls orange, I can do that."


As more cities and states adopt YIMBY policies, the movement may offer a path forward to address America’s affordable housing crisis, creating opportunities for more people to find homes that meet their needs and budgets.