{"id":171014,"date":"2024-04-22T12:56:07","date_gmt":"2024-04-22T18:56:07","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=171014"},"modified":"2024-06-03T05:28:09","modified_gmt":"2024-06-03T11:28:09","slug":"wave-of-zoning-law-changes-could-have-major-impacts-on-investors","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/wave-of-zoning-law-changes-could-have-major-impacts-on-investors","title":{"rendered":"A Wave of Zoning Law Changes Could Have Huge Impacts for Investors and Housing\u2014Here&#8217;s What You Need to Know"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC8114127858\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">The U.S.&nbsp;<\/span><span data-preserver-spaces=\"true\">is facing<\/span><span data-preserver-spaces=\"true\">&nbsp;a housing deficit of about&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.axios.com\/2023\/12\/16\/housing-market-why-homes-expensive-chart-inventory\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">3.2 million units<\/span><\/a><span data-preserver-spaces=\"true\">, and the situation is especially dire in urban areas like New York. It\u2019s one of the reasons prospective homebuyers are finding it increasingly difficult to find&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-145\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">affordable homes<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That\u2019s led many cities and communities to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.npr.org\/2024\/02\/17\/1229867031\/housing-shortage-zoning-reform-cities\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">consider changes to strict single-family zoning restrictions<\/span><\/a><span data-preserver-spaces=\"true\">,&nbsp;<\/span><span data-preserver-spaces=\"true\">which are<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nahro.org\/journal_article\/rethinking-zoning-to-increase-affordable-housing\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">correlated<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;with high home prices, surging rents, and fewer housing starts. Many see the reversal of pervasive restrictions on&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;construction across cities as a solution to the affordable housing crisis.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Zoning changes often face pushback from existing homeowners, as many&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.aier.org\/article\/the-sad-irony-of-not-in-my-backyard-nimby\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">fear<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;a sudden drop in home equity, the rise of new skyscraper apartment buildings, increased traffic congestion, and higher crime. But a shift to \u201c<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.aei.org\/light-touch-density\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">light touch density<\/span><\/a><span data-preserver-spaces=\"true\">,\u201d which would allow fourplexes or smaller multifamily buildings and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/accessory-dwelling-units-explained\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">accessory dwelling units<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;(ADUs) to&nbsp;<\/span><span data-preserver-spaces=\"true\">be built<\/span><span data-preserver-spaces=\"true\">&nbsp;on land currently zoned for single-family homes, has the potential to increase housing availability and affordability without a substantially negative impact on current homeowners.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Duplexes Make a Difference in Palisades Park<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The town of<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/2024\/03\/25\/opinion\/new-jersey-housing-crisis.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Palisades Park<\/span><\/a><span data-preserver-spaces=\"true\">, New Jersey, has been building duplexes to replace old single-family homes since the 1980s, when an influx of Korean immigrants increased demand for housing in the area. While the town\u2019s zoning laws allowed for two-unit&nbsp;<\/span><span data-preserver-spaces=\"true\">homes<\/span><span data-preserver-spaces=\"true\">&nbsp;on each lot since 1939, developers only began implementing the strategy when demand for new construction made it a profitable move.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">A benefit of this type of density change,&nbsp;<\/span><span data-preserver-spaces=\"true\">when<\/span><span data-preserver-spaces=\"true\">&nbsp;compared to constructing large apartment buildings, is that it doesn\u2019t require local government subsidies or complex planning. Yet, over time, it makes sense that replacing single-family homes with duplexes doubles the&nbsp;<\/span><span data-preserver-spaces=\"true\">supply of housing<\/span><span data-preserver-spaces=\"true\">. The population in Palisades Park has grown 40% since 1990, vastly outpacing population growth across the New York metropolitan area, and the resulting economic activity has revitalized the town\u2019s Main Street.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As the duplexes typically replace deteriorating homes, their construction more than doubles the value of each lot. That has allowed Palisades Park to reduce its&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/property-tax-faq\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">property tax<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;rate over the decades\u2014neighboring Leonia\u2019s residents (where duplexes are illegal) paid taxes at double the rate of Palisades Park residents last year.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The town\u2019s vibrant culture has also made it a desirable place to live, which may be why homes in the community sold for a median of $950,000 in March, according to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/city\/14436\/NJ\/Palisades-Park\/housing-market\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Redfin<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">A meaningful change in the&nbsp;<\/span><span data-preserver-spaces=\"true\">supply of housing<\/span><span data-preserver-spaces=\"true\">&nbsp;takes time, however<\/span><span data-preserver-spaces=\"true\">, and with<\/span><span data-preserver-spaces=\"true\">&nbsp;an annual redevelopment rate of about 2% of available and desirable plots of land, it could take many years for Palisades Park to become a town consisting entirely of duplexes. And despite the gradual and minimal change in density, some longtime residents expressed discontent that the area became less green and more crowded over the years, according to a local sociology professor.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Still, the sentiment of current residents of Palisades Park is generally positive, and the community is a far cry from the hustle and bustle of New York City. And while some suburban politicians claimed looser zoning restrictions would result in overcrowding akin to the Big Apple, it\u2019s clear the changes in Palisades Park weren\u2019t that drastic, and the flexibility of zoning laws still proved beneficial for the community.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Wave of Zoning Changes in Cities and States<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">At least&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/interactive\/2019\/06\/18\/upshot\/cities-across-america-question-single-family-zoning.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">three-quarters<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;of residential land in most cities is zoned only for single-family homes, rendering developers incapable of building sufficient multifamily housing to meet demand across the country. Many municipalities are therefore reconsidering whether strict zoning laws, which&nbsp;<\/span><span data-preserver-spaces=\"true\">were initially intended<\/span><span data-preserver-spaces=\"true\">&nbsp;to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/florida-live-local-act-could-be-the-blueprint-for-housing-affordability\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">perpetuate racial segregation<\/span><\/a><span data-preserver-spaces=\"true\">, may be an unnecessary obstacle.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For example, California passed&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.brookings.edu\/articles\/in-california-statewide-housing-reforms-brush-against-local-resistance\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">several new policies<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;requiring localities to allow ADUs and reducing obstacles to development. Colorado is also&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/coloradosun.com\/2024\/01\/31\/colorado-accessory-dwelling-units-housing-bill\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">considering legislation<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;that would allow the construction of ADUs in many areas.&nbsp;<\/span><span data-preserver-spaces=\"true\">Advocates recognize ADUs as a means to provide more affordable housing to more people while&nbsp;<\/span><span data-preserver-spaces=\"true\">also allowing homeowners the opportunity<\/span><span data-preserver-spaces=\"true\">&nbsp;to collect rental income and offset rising housing costs.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Since 2017,&nbsp;<\/span><span data-preserver-spaces=\"true\">the city of<\/span><span data-preserver-spaces=\"true\">&nbsp;Minneapolis has been reforming its&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.npr.org\/2024\/02\/17\/1229867031\/housing-shortage-zoning-reform-cities\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">zoning rules<\/span><\/a><span data-preserver-spaces=\"true\">, making it possible (and more affordable) to build apartment buildings. These changes have resulted in a 12% increase in the housing supply over&nbsp;<\/span><span data-preserver-spaces=\"true\">a five-year period<\/span><span data-preserver-spaces=\"true\">&nbsp;and stabilized rents relative to other parts of Minnesota.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The University of California, Berkeley\u2019s&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/belonging.berkeley.edu\/zoning-reform-tracker\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">zoning reform tracker<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;shows the status of zoning reform initiatives across the country, from Albuquerque, New Mexico, to Washington, D.C. More than 45 municipalities have approved ordinances allowing for ADU reform, according to the tracker. The interactive map makes it clear these efforts are popping up everywhere, in both red and blue states.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cities have taken varying approaches, but most reforms&nbsp;<\/span><span data-preserver-spaces=\"true\">are focused<\/span><span data-preserver-spaces=\"true\">&nbsp;on allowing light touch density. These policies, as evidenced by thriving Palisades Park, are more likely to provide a compromise between building new housing and protecting the character of local communities.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Still, some attempts at zoning reform have&nbsp;<\/span><span data-preserver-spaces=\"true\">been met<\/span><span data-preserver-spaces=\"true\">&nbsp;with harsh resistance from homeowners. A group of homeowners in Austin, Texas,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.kut.org\/austin\/2023-12-12\/judge-orders-austin-to-scrap-rules-that-let-developers-build-more-in-exchange-for-affordable-housing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">filed suit<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;against the city, leading a judge to block several efforts to allow for more dense housing that met affordability requirements.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Zoning Reform Is Worthwhile, but It\u2019s a Challenging and Incomplete Solution<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Alongside zoning ordinances, a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.jchs.harvard.edu\/blog\/single-family-zoning-can-history-be-reversed\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">slew of obstacles<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;prevent residential development in cities. Authorities may delay zoning reforms to review the environmental impact of new construction, for example.&nbsp;<\/span><span data-preserver-spaces=\"true\">It\u2019s a common practice that<\/span><span data-preserver-spaces=\"true\">&nbsp;began in 1970s suburbs in an effort to stall new development.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some requirements, such as building and fire codes, have&nbsp;<\/span><span data-preserver-spaces=\"true\">evolved to<\/span><span data-preserver-spaces=\"true\">&nbsp;become more burdensome for developers.&nbsp;<\/span><span data-preserver-spaces=\"true\">Approval processes are often lengthy and<\/span><span data-preserver-spaces=\"true\">,&nbsp;<\/span><span data-preserver-spaces=\"true\">when combined with permitting fees and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/blog.naiop.org\/2023\/12\/how-rising-construction-costs-are-impacting-real-estate-development\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">high construction costs<\/span><\/a><span data-preserver-spaces=\"true\">, can make many projects economically infeasible<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">To encourage new construction<\/span><span data-preserver-spaces=\"true\">, cities must streamline these processes.&nbsp;<\/span><span data-preserver-spaces=\"true\">What\u2019s more<\/span><span data-preserver-spaces=\"true\">, reforming local zoning codes may not impact development if other restrictions are in place. A meaningful increase in housing supply requires&nbsp;<\/span><span data-preserver-spaces=\"true\">a careful review of<\/span><span data-preserver-spaces=\"true\">&nbsp;every&nbsp;<\/span><span data-preserver-spaces=\"true\">restriction<\/span><span data-preserver-spaces=\"true\">&nbsp;that could prevent progress, like minimum lot size and building size requirements. For example, Minneapolis had to throw away parking requirements for zoning reforms to be effective.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even in Houston, a city&nbsp;<\/span><span data-preserver-spaces=\"true\">that has yet to enact<\/span><span data-preserver-spaces=\"true\">&nbsp;zoning laws, inflexible requirements and workarounds present&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/planning.org\/planning\/2020\/jan\/the-z-word\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">significant hurdles<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;Homeowners who oppose more dense housing have found ways to prevent&nbsp;<\/span><span data-preserver-spaces=\"true\">development in their communities<\/span><span data-preserver-spaces=\"true\">&nbsp;even without a zoning code. Residents can vote to designate their neighborhood as a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/buying-a-home-in-a-historic-district-can-be-a-goldmine\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">historic district<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and enforce building restrictions that way, and affluent communities often impose private deed restrictions.&nbsp;<\/span><span data-preserver-spaces=\"true\">The Houston City Council uses&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/therealdeal.com\/texas\/2023\/03\/16\/dont-say-the-z-word\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">\u201cbuffering\u201d ordinances<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and other rules to control&nbsp;<\/span><span data-preserver-spaces=\"true\">what type of development is<\/span><span data-preserver-spaces=\"true\">&nbsp;permitted in certain areas,&nbsp;<\/span><span data-preserver-spaces=\"true\">essentially<\/span><span data-preserver-spaces=\"true\">&nbsp;creating land use zones.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Houston has made changes that have ramped up new construction over the years<\/span><span data-preserver-spaces=\"true\">, however<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;A policy that lessened the minimum lot size led to the construction of more than 34,000 townhomes in high-demand areas from 2007 to 2020, which expanded access to affordable housing for residents, according to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pewtrusts.org\/en\/research-and-analysis\/issue-briefs\/2023\/09\/lot-size-reform-unlocks-affordable-homeownership-in-houston\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Pew<\/span><\/a><span data-preserver-spaces=\"true\">. The Houston Land Bank is converting tax-delinquent properties into affordable housing complexes.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The process of<\/span><span data-preserver-spaces=\"true\">&nbsp;redeveloping a community, whether it\u2019s zoned for single-family homes or burdened by other cumbersome restrictions, also takes time. It took years for the state of Oregon to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/tcf.org\/content\/report\/a-bipartisan-vision-for-the-benefits-of-middle-housing-the-case-of-oregon\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">pass legislation<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">that would allow<\/span><span data-preserver-spaces=\"true\">&nbsp;the construction of properties up to four units across the state and for cities to comply. Even with the new law&nbsp;<\/span><span data-preserver-spaces=\"true\">in place<\/span><span data-preserver-spaces=\"true\">, only a&nbsp;<\/span><span data-preserver-spaces=\"true\">small<\/span><span data-preserver-spaces=\"true\">&nbsp;share of parcels became ripe for redevelopment each year.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The city of Portland expects that the new zoning law will allow the construction of about 5,000 additional homes over 20 years in previously single-family neighborhoods.&nbsp;<\/span><span data-preserver-spaces=\"true\">Governor Tina Kotek has always admitted that zoning reform would&nbsp;<\/span><span data-preserver-spaces=\"true\">have a gradual impact on<\/span><span data-preserver-spaces=\"true\">&nbsp;housing affordability.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But even if progress is slow, it\u2019s worthwhile to reverse outdated zoning restrictions and related obstacles. Local governments have little control over high mortgage rates and rental inflation, but they can make&nbsp;<\/span><span data-preserver-spaces=\"true\">it easier to build<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">More than&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cayimby.org\/news-events\/press-releases\/new-report-highlights-success-of-policies-legalizing-more-homes\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">83,000 ADUs<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;have been permitted in California since reforms eased the costs and streamlined the process of ADU construction. That\u2019s only a drop in the bucket compared to the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/calmatters.org\/commentary\/2024\/04\/california-politicians-skirmish-housing-crisis\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">3.5 million new housing units<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;the state expects to need by 2025, but it\u2019s&nbsp;<\/span><span data-preserver-spaces=\"true\">nevertheless<\/span><span data-preserver-spaces=\"true\">&nbsp;an increase of more than 15,000% in permitted ADUs over a handful of years.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.freddiemac.com\/fmac-resources\/research\/pdf\/202006-Insight-10.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Freddie Mac<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;found the units cost less than one-third of the median home price in the area. In California, middle-income earners can afford most of the new units\u2014a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cayimby.org\/wp-content\/uploads\/2024\/01\/CAY-ADU_Report-2024-v4.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">report<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;notes that \u201cADU legalization triggered a boom in affordable housing at no cost to the taxpayer.\u201d&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Bottom Line<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Most cities host a community of homeowners who advocate maintaining strict zoning policies. They\u2019re known as&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.theatlantic.com\/newsletters\/archive\/2022\/07\/the-next-generation-of-nimbys\/670590\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">NIMBYs<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;(which stands for Not in My Backyard). The impulse to preserve a neighborhood\u2019s character is understandable, but the feared outcomes are often exaggerated, while the benefits&nbsp;<\/span><span data-preserver-spaces=\"true\">are ignored<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Zoning reform doesn\u2019t require the rapid bulldozing of parks and playgrounds. It merely gives developers more choices when redeveloping dilapidated houses, allowing them to fulfill the housing needs of other residents.&nbsp;<\/span><span data-preserver-spaces=\"true\">Efforts at achieving light touch density,<\/span><span data-preserver-spaces=\"true\">&nbsp;while slow-going and insufficient on their own, can nevertheless chip away at the unnecessary burdens developers face and promote an increase in housing supply over time.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_986c4dc626cb61f12d7810713bb3cd7d\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_b08ce636c9ca9b3b10a8c8fe83dce980\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_b4602e810813f714dadb403a7420510f class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/wave-of-zoning-law-changes-could-have-major-impacts-on-investors&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/wave-of-zoning-law-changes-could-have-major-impacts-on-investors&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The U.S.&nbsp;is facing&nbsp;a housing deficit of about&nbsp;3.2 million units, and the situation is especially dire in urban areas like New York. It\u2019s one of the reasons prospective homebuyers are finding [&hellip;]<\/p>\n","protected":false},"author":613615,"featured_media":171017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7384,7119],"tags":[],"class_list":["post-171014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics-policy","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/171014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613615"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=171014"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/171014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/171017"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=171014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=171014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=171014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}