Henry Honorof, director of the Welcoming Neighbors Network (WNN) and a grantee of Arnold Ventures, outlined the role of state-level pro-housing policy in addressing America’s housing crisis. Through a lens of bipartisan problem-solving, Honorof asserted that abundant housing can significantly improve housing affordability and stimulate economic growth.
Understanding “Abundant Housing”
Honorof defined abundant housing as having a sufficient number of homes to meet the current and future needs of the population, with diverse housing options available at various price points and locations. He described abundant housing policies that aim to remove barriers to building more housing options in high-demand areas while targeting naturally more affordable housing types like plexes and small apartments.
The Impact of Abundant Housing Policies
- Naturally Affordable Housing: Honorof maintained that policies promoting middle housing options, such as duplexes and small apartments, tend to be more affordable than single-detached houses. For instance, across the United States, rents for middle housing are approximately 20% less than those for single-detached homes and up to 50% less in high-cost metropolitan areas like New York City and Los Angeles.
- Market-wide Affordability: Honorof emphasized that increasing housing supply can lower rents and housing prices across the country. He cites studies by the Philadelphia Federal Reserve and the Journal of Economic Geography demonstrating that new market-rate buildings can reduce nearby rents by 5-7%, and a 10% increase in housing stock can decrease rents by 1%.
- Case Studies: Honorof described Auckland, New Zealand’s zoning reform in 2016, which quadrupled the number of homes that could be built, resulting in a significant drop in rents. Similarly, he contended, American cities that build more apartments tend to experience a decrease in rents, while those that build fewer see rents rise continuously.
The Role of State Action
Honorof suggested that state legislatures are in a unique position to drive housing policy reforms that local governments may struggle to implement due to policy inertia and NIMBY (Not In My Back Yard) sentiments. With broader responsibilities and electorates, Honorof asserted that states can take a holistic approach to housing and land use decisions.
Popular State-Level Pro-Housing Policies
There has been a wave of bipartisan support for pro-housing policies at the state level in recent years. Honorof highlighted notable measures, including:
- Re-legalizing accessory dwelling units (ADUs)
- Permitting middle housing
- Allowing apartments in all commercial areas
- Allowing single-family homes on smaller lots
- Streamlining the housing development approval process
Examples of Legislative Successes
In 2024, several states passed significant pro-housing policies. Honorof pointed to examples from Western states:
- Colorado:
- Established transit-oriented communities zoned for at least 40 homes per acre within ½ mile of transit stops
- Re-legalized ADUs statewide
- Eliminated onerous parking mandates near transit stops
- Ended arbitrary caps on unrelated people living together
- Created housing needs assessment requirements for cities
- Arizona:
- Legalized 2 ADUs per lot in major cities + 1 bonus ADU on large lots
- Legalized fourplexes within 1 mile of city centers in major cities
- Legalized mid-rise apartments in commercial zones via adaptive reuse
- Established a modest permitting shot clock
- Hawaii:
- Legalized 2 ADUs per lot (with an alternative option that allows ADUs in some places, plus substantially increasing housing capacity in apartment zones)
- Legalized mixed-use and multifamily housing in commercial zones
Pro-Housing Organizations:
Welcoming Neighbors Network comprises 38 independent state & local pro-housing organizations across 24 states. For more information, email henry@welcomingneighbors.us.