Mapping the Y.I.M.B.Y. Movement

Nearly everyone can agree that America has a housing supply problem. By the end of 2023, the U.S. had an estimated deficit of 2.5 million homes. Rising material costs and labor shortages contribute to this issue, but local zoning and building ordinances designed to discourage construction have played a leading role. Faced with record low levels of housing stock, many cities and towns across the country are now embracing innovative building policies and solutions that encourage density and offer a variety of residential options.

The Y.I.M.B.Y. movement in action

The Y.I.M.B.Y. movement—it stands for yes, in my backyard—is gaining momentum in American communities. Local officials and residents are giving the go-ahead to accessory dwelling units, implementing “missing middle” ordinances, and rezoning for greater housing capacity. These efforts aim to address the housing shortage by creating a more diverse and plentiful supply of homes."When it comes to solving the housing crisis, we need a dual approach: more construction and more efficient use of existing housing stock,” Pacaso CEO and Co-Founder Austin Allison said. “Communities across the country increasingly are open to innovative solutions, including higher density and co-ownership models that maximize the functionality of available homes. Embracing these strategies will lead to more options for homebuyers and better use of our limited resources."Pacaso set out to identify U.S. metropolitan areas that are embracing change to encourage density and provide a greater array of housing options. To find these Y.I.M.B.Y. trendsetters, we focused on areas with a clear need for new housing, where construction has been plentiful and price growth relatively modest. We concentrated on new development within existing communities, which are more frequently the source of local opposition, and excluded metros with high-growth exurban sprawl."It's great to see examples of localities that are advancing pro-housing policies so activists, elected officials, and agencies can mirror their success in more places," said Jessamyn Garner, communications director at YIMBY Action. "In the coming years, it's crucial that these policies are implemented to the fullest extent possible in order to reduce housing prices in these communities and beyond."In collaboration with MetroSight, Pacaso identified ten metro areas that rose to the top of the Y.I.M.B.Y. scale in our inaugural Pacaso Y.I.M.B.Y. Report. We classified high-demand ZIP codes as Y.I.M.B.Y. based on their increase in housing stock relative to home price growth. Metros with an abundance of such ZIP codes ranked higher on our Y.I.M.B.Y. scale.

The top ten Y.I.M.B.Y markets revealed

1. Washington, D.C.

Greater Washington, D.C., which includes parts of Virginia, Maryland, and West Virginia, led the pack far and away. Among the areas in greater Washington showing clear demand for new housing, more than 70 percent met our definition of Y.I.M.B.Y. While greater Washington has many existing high-density communities, the region rose to the top of our roster because its localities are leading advocates of Y.I.M.B.Y. land-use policy. Just outside Washington, D.C., Virginia's Arlington County adopted a “missing middle” ordinance last year that allows construction of two- to six-unit buildings in areas zoned for single-family detached housing. Neighboring Alexandria, Virginia, and Montgomery County, Maryland, have passed plans to increase density and add affordable residential units.

2. Chicago, Illinois

Second on our list is Chicago, Illinois, which differs from some of our other top-ranked metros because it lacks the same strength of housing demand. Only about 7 percent of ZIP code areas in the 10 million-strong population of greater Chicago met our criteria for clear housing demand. However, those high-demand areas strongly correlated with our Y.I.M.B.Y. criteria. The city updated its Affordable Requirements Ordinance in 2021 to facilitate more affordable housing and encourage new construction.

3. Austin, Texas

Austin, Texas, which ranks third on our list, stood out for the clear demand we found in all of its ZIP code areas; almost half of those emerged as Y.I.M.B.Y. In May, the Austin City Council voted to reduce the minimum single-family lot size and allow triplexes, townhomes, and other small multifamily developments in districts zoned for single-family houses. Nearby San Antonio also saw relatively large shares of their highly sought-after areas embracing Y.I.M.B.Y.ism.

4. Minneapolis, Minnesota

Fourth on our list is Minneapolis, Minnesota. In 2019, it became the first large U.S. city to eliminate single-family zoning, a move intended to spur development of duplexes and other missing middle housing. Today, two- to four-unit buildings make up a growing share of the city’s housing stock.

5. Columbus, Ohio

Columbus, Ohio, also high on the list, appears to be poised for even more housing innovation. In May, the city introduced a plan to reshape the city and allow construction of as many as 88,000 new housing units.The proposal aims to limit car-focused urban sprawl and make it easier for homeowners and developers to navigate building rules. Nearby Kansas City in 2022 adopted rules to allow rentals in accessory dwelling units. The Salt Lake City area ranked among the top U.S. metros. In Utah, legislators passed a law in 2023 that requires municipalities and counties to regulate co-owned homes no differently than other residential units. The measure was a win for the growing practice of fractional or shared homeownership, which makes more efficient use of existing housing units.Finally, New York and Philadelphia, both desirable metros with high density, boast some of the most Y.I.M.B.Y. ZIP codes in the nation.

Y.I.M.B.Y. locales and green-zone metros on the rise

The up-and-coming Y.I.M.B.Y. regions of Seattle (22.6%) and Portland, Oregon (21.9%), stand out as early movers in streamlining construction of accessory dwelling units, or in-law units, and other land-use policy reforms. Other high-growth metros proved to have weaker Y.I.M.B.Y. tendencies because their growth relied more squarely on exurban and low-density development. These include the regions of Phoenix and Las Vegas in particular, as well as Atlanta, Dallas, Nashville, and Florida’s Orlando and Tampa, where construction is taking place primarily outside areas with high demand in what are called green zones.Policymakers and economists are almost universally aligned in agreement that the country needs more housing to keep up with demand. But places at the top of our Y.I.M.B.Y. scale have been more proactive than others in loosening zoning restrictions, attracting development, and embracing innovative ways to make more efficient use of existing housing stock. They’re rethinking single-family zoning, encouraging mother-in-law or accessory dwelling units, and embracing innovations such as co-ownership.Pacaso is a member of YIMBY Action, a network of people who advocate for abundant housing and inclusive, sustainable communities across the United States.

Methodology

Pacaso analysts worked with MetroSight to determine the ranking of top Y.I.M.B.Y. metro areas and ZIPs. Only previously developed ZIP Code Tabulation Areas (ZCTAs) were included in the study, and only those with substantial housing price and/or stock growth were considered as Y.I.M.B.Y. candidates. A ZIP code area was classified as Y.I.M.B.Y. if it experienced sharp growth in the number of residential units with relatively little growth in housing prices. Home price and housing stock data were compiled and measured between two five-year periods, 2008-2012 and 2018-2022, with 2022 being the latest year for which data is available. Metro areas with the largest share of Y.I.M.B.Y. ZIPs were ranked on a scale to determine the top U.S. Y.I.M.B.Y. metro areas.