Homeownership has become the main method of acquiring wealth in the United States. Indeed, most American homeowners hold a majority of their assets in their homes. As the US has a poor social safety net compared to other developed countries, acquiring and holding wealth is key to economic success. But the US is plagued by a cost of living crisis. About 46% of renters in the US are cost-burdened, meaning they spend more than 30% of their income on rent, while about 21% of homeowners are cost-burdened, representing a massive gap between homeowners and renters. Housing costs in coastal states like California and New York are particularly high and has led to an exodus of young people leaving for states with cheaper living costs. 

The problem of rising housing costs is an issue of supply and demand. Not enough housing is being built to meet demand, and the types of housing being built is not sufficient. A 2022 study by Pew Research has shown that while inventories are down, prices are up. For those who already own a home, this is excellent news. The value of their assets are appreciating and with it their wealth is increasing. For those who aren’t homeowners, it is not good news. Their wages are not keeping up with the increasing cost of rent, which increases their rent burden. It is prohibitively expensive to buy a home. 

The obvious solution is to increase the supply of housing to keep up with demand. The best way to increase housing supply is to allow for the development of apartments and multi-family homes which would increase density and thus alleviate supply constraints. But these strategies are prevented by exclusionary zoning laws. Exclusionary zoning restricts certain types of development. A prime example is single-family-zoning. These laws mandate that any commercial development in certain areas be single-family homes. Apartments and multiplexes are prohibited. Single family homes are more expensive to build and purchase. They encourage sprawl and exacerbate inequality by preventing more affordable housing from being built. To solve the housing crisis and alleviate supply constraints, it is vital that these exclusionary zoning laws be repealed to allow denser development projects. But the NIMBY movement is a major roadblock.

Cartoon found on twitter showing how density alleviates housing shortage. https://twitter.com/cayimby/status/1259679621785759744

Homeowners are keen to protect their wealth, and any increase in the supply of housing poses a threat to that wealth. The opposition to the Southland apartments is a prime example. Residents will fight tooth and nail to prevent any changes to zoning laws which will allow new housing in their neighborhoods. They will organize with other homeowners who have a common stake in protecting their wealth. NIMBY homeowners view development as a zero sum game wherein lower class people are given cheaper housing at the expense of the value of the already existing homeowners. It is a battle to protect their hard earned wealth from low class individuals who they view as unworthy and undeserving. The NIMBY strategy on housing is simple: oppose any changes to zoning laws which will allow development of dense housing which will drag down the value of their own home. They organize, attend community meetings, and call their local representatives. They make their opposition loud and clear and take to social media to increase the impact of their message. 

The opposition mainly comes from older, whiter, wealthier citizens who have disproportionate economic, social, and political power. Research has found that this opposition is a major barrier to housing construction, and thus a major contributor to the housing crisis and inequality. One of the main strategies NIMBYs use is to claim that they support affordable housing, and that most proposed development is market rate. But demanding 100% affordable housing is unrealistic as developers have little profit incentive to build affordable housing. By insisting that all new housing development is affordable, NIMBYs can effectively block most housing construction while claiming to be on the side of low income people who need housing. It is the primary strategy employed by liberal NIMBYs in San Francisco.