EP#32 Mike Kingsella | Can YIMBYs Reverse The Supply Slowdown?
May 1, 2025
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Mike Kingsella, CEO of Up for Growth, champions YIMBY (Yes In My Backyard) initiatives aimed at increasing housing supply. He discusses the slowing multifamily housing construction and the need for a bipartisan approach to tackle rent control and affordability issues. Kingsella emphasizes the importance of collaboration among diverse leaders to unite behind building more homes. The conversation also explores the implications of current housing policies, landlord-tenant dynamics, and the pressing need for community engagement in solving housing challenges.
The significant decline in multifamily housing construction highlights an urgent need for policy changes to address the impending undersupply crisis.
The YIMBY movement is gaining national recognition, effectively advocating for increased housing construction and regulatory reforms to tackle affordability issues.
Bipartisan efforts, such as the formation of the YIMBY caucus in Congress, are essential for fostering collaboration on effective housing access and affordability policies.
Deep dives
Current Housing Supply Trends
The supply of apartment housing is experiencing a significant decline, marking a 13-year low in construction with just over 200,000 units started in the last 12 months. This shortage indicates a long-term trend of decreased completions, which are projected to drop below 300,000 units annually in coming years. The high levels of supply seen in previous decades, particularly the peak of around 600,000 units, are unlikely to return as economic and regulatory challenges hinder new developments. This decrease in supply emphasizes the critical need for policy changes that encourage more construction to meet the pent-up demand for housing.
The YIMBY Movement's Rise
The YIMBY (Yes In My Backyard) movement is gaining momentum as a grassroots response to the housing crisis, advocating for increased construction and easing of regulations to enhance housing availability. Its influence is evident in recent policy wins across various states, including California and Arkansas, as well as within congressional initiatives aimed at fostering housing equity. The movement, supported by notable figures and recent literature, is shifting the cultural dialogue around housing, urging people to recognize the necessity of building more homes to address affordability issues. This shift is important as it draws attention to the collective urgency for housing solutions that benefit renters and communities alike.
Understanding Housing Affordability Dynamics
The interplay between housing supply and affordability is complex, with research indicating that increasing market-rate housing can positively impact lower-income households through a 'filtering' effect. As higher-income renters move into newly constructed units, this opens up availability in lower-tier apartments, thus providing options for those who may not afford market-rate housing. Despite common misperceptions that only affordable housing is needed, significant evidence shows that a diverse range of housing products must be built to effectively meet demand across income levels. This understanding is crucial for policymakers and advocates in addressing the long-term housing affordability crisis.
Bipartisan Support for Housing Solutions
The housing crisis is increasingly recognized as a nonpartisan issue, uniting lawmakers from various political backgrounds around the shared goal of improving housing access and affordability. The establishment of the YIMBY caucus in Congress, which brings together representatives from different states and political affiliations, exemplifies this growing bipartisan approach. Collaborative efforts at all governmental levels—local, state, and federal—are necessary to implement effective housing policies that prioritize supply and address systemic barriers to development. This coalition building is critical as it enables the exchange of ideas and best practices among those committed to resolving the housing shortage.
Advocacy and Engagement in Housing Policy
Engaging industry professionals, advocates, and policymakers in meaningful dialogue is essential to drive forward effective housing solutions. Organizations like Up for Growth offer platforms for individuals in the real estate and housing sectors to contribute their expertise and insights, ensuring informed decision-making in the development process. Participation in advocacy efforts not only helps combat detrimental policies like rent control but also promotes a deeper understanding of housing economics among stakeholders. By uniting and actively engaging with these initiatives, industry members can help shape a housing policy landscape conducive to development and affordability.
Multifamily housing construction is slowing — and fast. While current deliveries are putting significant downward pressure on rents, the story could very soon shift from "oversupply" back to "undersupply." Rental housing economist Jay Parsons shares the latest data on apartment starts and completions, and asks: Could YIMBYs be part of the answer in bringing back at least pickup in apartment construction? Certainly, YIMBY-ism is having its moment — maturing from a grassroots effort in California to a national movement that now includes a best-selling book ("Abundance" by Ezra Klein and Derek Thompson) to members of the U.S. Congress forming a bipartisan YIMBY Caucus. One of the leaders at the center of this movement is Mike Kingsella, who shares how and why he joined the YIMBY cause, and where he sees it going. Mike has helped bring together a unique and diverse group of leaders across housing advocacy, policy, and industry to unite behind the singular cause of getting more housing built all across the country. Additionally, Jay brings in YIMBY-centric editions of recurring segments like "In the News" and "Rental Housing Trivia."
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