Why rezoning and building more alone will not fix affordability

Why rezoning and building more alone will not fix affordability

Rezoning and adding more housing alone will not solve Raleigh’s affordability challenges. To make meaningful progress rapidly, we need a comprehensive strategy that includes building a diversity of unit types and price points, expanding Naturally Occurring Affordable Housing (NOAH), balancing individual ownership and institutional investment, and incentivizing developers to ensure rezoned projects get built.

The Attack on Single-Family Zoning

The Attack on Single-Family Zoning

I have experience valuing homes that are next to duplexes, fourplexes and apartment buildings; I see what’s happening in these neighborhoods. Once zoning is changed from single-family to multi-family, developers move in and start competing against families for older homes. Unfortunately, the builder always wins because they have more money and are willing to pay cash. Homes, perfect for a starter family or in need of being rehabbed will be purchased by a developer who will tear the house down to make way for a new multi-unit building on a small 5,000-square-foot site. (It’s called the highest and best use of the land). The moment construction starts, the value of a nice condition single-family home next door goes down; the appraisal term is called external obsolescence. Welcome to capitalism in America.