When confronting a problem, some individuals have difficulty seeing a solution that is right in front of their nose. And this is particularly true when they are busy looking down their nose. The affordable housing crisis provides an example.
Virtually everyone agrees that there is a substantial shortage of housing for low-income families. The primary reason for this is the high cost of producing new housing, and government land-use regulations are one of the most significant contributors to that cost. Many studies have found that land-use regulations can add 40 percent or more to the cost of new housing.
The biggest culprit is the use of single-family zoning to arbitrarily limit housing density. In neighborhoods zoned for single-family housing, it is illegal to build duplexes, “granny flats,” or anything else that would increase housing density. In most cities, more than 60 percent of the land is zoned to single-family housing.
Defenders of single-family zoning claim that allowing multi-family housing in a neighborhood will reduce property values. Multi-family housing, their argument goes, attracts the “wrong” kind of people, thereby driving up crime rates and reducing property values. This claim is repeated like a mantra by many single-family zoning advocates. But is this claim true?
I conducted a very brief survey of four zip codes in Harris County, Texas. I looked at population density, median income, and the number of reported crimes per 1,000 residents from January 1, 2021, to April 11, 2021. While this is an admittedly limited and unscientific survey, it suggests that high density and low-income do not necessarily increase crime rates. Indeed, the two zip codes with the highest median incomes also had substantially higher crime rates than the densest and poorest zip code.
Further, a study published by the Kem. C. Gardner Policy Institute in Utah examined the impact that new apartments have on the value of nearby single-family homes. The study found that from 2010 to 2019 homes within a half-mile of new apartments buildings averaged a 10 percent annual increase in median value, while homes further away experienced appreciation of 8.6 percent per year. While this study was limited to one county in one state, numerous other studies cited in the report have had similar findings.
If we want to make wise decisions regarding housing, zoning, and related issues, we must examine the full context. To simply repeat claims might play well with those who all agree with one’s position. To embrace the conventional wisdom without considering whether that position is objectively demonstrated will not lead us to good decisions. The conventional wisdom holds that high-density housing is bad for home owners, but the actual facts point to a much different conclusion.