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Housing shortages lead to rising housing costs, slower economic growth, and homelessness. Medium density housing is a solution profitable for landowners and beneficial to renters. However, there is a coordination problem for all existing residents to release control of their neighborhoods.

Here's the solution: A policy approach facilitating density development deals in which current homeowners do not give up their land. Instead, they would exchange single-family housing to income-generating penthouse condos, making homeowners amenable to density development.

Homeowners would be incentivized to act as investors attracting developers, rather than as NIMBYs or hold-outs. This framework could be structured to allow current residents to shape the character of their neighborhoods. With this pro-development incentive in place, it would be easier to change zoning laws that inefficiently and inequitably restrict housing.

Contact nate@outsideinnovation for details.

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