NIMBY is a movement that is quickly spreading across the nation. Standing for Not in My Back Yard, this movement has been gaining steam in neighborhoods made up of mostly single-family homes and homeowners. These homeowners do not want certain types of developments to join their neighborhood for fear of depressed housing prices and a “specific type of person” coming into the neighborhood. These homeowners are pushing strongly back, specifically against new developments housing multifamily units.
This attitude, along with housing regulations, is keeping builders from adding these types of properties in areas that sorely need them. According to Steve Lawson, chairman of National Association of Homebuilders Multifamily Council, “Multifamily builders and developers are seeing strong demand, but there are headwinds that have impacted further development.”
Much of the decline in overall sentiment came from the market-rate and condo categories. The NAHB report states that the MPI fell two points to 51 compared to the previous quarter. The MPI is measured on a scale of 0 to 100, with a number above 50 indicating that more respondents report conditions are improving than report conditions are getting worse.
The MPI is broken down into three components: the construction of low-rent units, apartments that are supported by low-income tax credits or other government subsidy programs; market-rate rental units, apartments that are built to be rented at the price the market will hold; and condominiums.
Economists say that the development will need to continue to be tracked, but for now, we are doing alright. However, as lumber prices continue to rise with increasing tariffs, we need to be ever vigilant to consider the regulations that may come into play as the market changes and plan for these and other changes that could halt the market even further.
The NIMBY movement does not stop with housing though. Many neighborhoods are similarly frustrated with airports, landfills, shopping malls, hospitals, power plants, factories, or even wind turbines being added to their neighborhood.