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The old battle cry of "Not In My Backyard" (NIMBY) is rapidly being replaced with a new rallying chant: YIMBY, or "Yes In My Backyard."

YIMBYs are like that over-eager guy at a party who keeps offering to buy more booze, while NIMBYs are the old couple peeking through the blinds, yelling, ‘Not in MY backyard, you degenerates!’ Meanwhile, the rest of us are just wondering when we’ll ever afford a place to have a backyard.

With real estate prices surging and housing affordability in free fall, a fresh, energetic movement is rising to reshape the future of housing markets worldwide. These YIMBYs believe that more housing supply, fewer zoning restrictions, and embracing higher-density developments could be the key to addressing the housing crisis—and they may just be right.

The Rise of YIMBYism

YIMBYism took root in cities like San Francisco and Austin, where young professionals working in booming industries—especially tech—found themselves priced out of their own communities. According to sociologist Max Holleran, whose book Yes to the City dives deep into the movement's origins, YIMBYism is a response to skyrocketing housing costs that have left many millennials and Gen Zers feeling as though they've done everything "right" but still can’t afford a place to live.

The movement began as a counter to NIMBYism, the long-standing opposition from homeowners who have resisted new developments for fear of declining property values and increased density.

In short, NIMBYs are worried that new buildings will ruin the ‘character’ of their neighborhood. But seriously, unless your neighborhood’s ‘character’ is already ‘overpriced hellscape with a 50-year waiting list,’ I think you’ll be fine with a few more condos.

These are, after all, the same people who grumble about construction noise from behind their perfectly manicured hedges. YIMBYs, on the other hand, are throwing open their metaphorical gates and asking for more housing options, more density, and fewer restrictions—essentially, more everything.

Tech companies, whose booming workforces have helped fuel population growth in cities like San Francisco, have also quietly aligned with YIMBYs, recognizing that talent will flee elsewhere if their employees can’t afford to live in these cities. As housing expert Jerusalem Demsas points out, even mainstream Democratic and Republican politicians have recognized the need for building more units and clearing outdated laws.

Why YIMBYs Are Right

At its core, YIMBYism is about supply and demand. The logic is simple: if there are more homes, competition for each one decreases, driving prices down. The problem is the housing supply has been shrinking for decades. According to The Economist, house-building in the developed world has dropped by 50% since the 1960s, largely due to increasingly strict zoning laws and development restrictions.

These barriers, from how pitched a roof can be to the number of parking spaces per unit, have reduced the pace of new developments. In the U.S., exclusionary zoning laws that limit the type and density of housing that can be built in certain areas are particularly damaging, pushing prices skyward.

YIMBYs, with their pro-development stance, argue that building more housing—even luxury apartments—can improve affordability for everyone. Their argument hinges on the concept of "filtering," where newer, more expensive housing frees up older, less desirable units, thereby making housing more affordable for lower-income residents. Max Holleran calls this "tech-oriented practicality," where solutions are focused not on revolutionizing society but on building more homes.

The Critics—and Why They’re Wrong

Of course, not everyone is sold on the YIMBY vision. Critics, including many traditional affordable housing advocates, argue that building more units isn’t enough. They claim that focusing solely on supply ignores the need for affordable housing and the risk of gentrification.

However, the data shows that YIMBYism has the potential to make a real impact. In São Paulo, zoning reforms boosted the housing supply by 1.4%, leading to a 0.4-1% price reduction. And Tokyo, where supply restrictions were relaxed after the 1990s housing bubble burst, saw over 1 million new housing units built in just a decade, a supply boom that helped stabilize prices.

Even Australia, where the YIMBY movement is gaining momentum, has started to reap the benefits. Sydney has increased annual completions by 50% since the early 2000s, partly thanks to rezoning efforts championed by YIMBY groups. In places like Sydney and Melbourne, where zoning restrictions are being eased, affordable housing advocates are seeing some success in creating more inclusive neighborhoods without sacrificing affordability.

What’s clear is that the status quo simply isn’t working. Housing supply is constrained, prices rise, and younger generations scramble for housing. The YIMBY solution? More housing, plain and simple.

HEADLINES

Membership Mayhem: The National Association of Realtors (NAR) faces a new lawsuit challenging its mandatory membership policies and alleging discrimination against minority real estate professionals. The suit filed by Maurice Muhammad of Progressive Realty in Pennsylvania claims that NAR's requirement for agents to join the organization to access MLS listings violates antitrust laws and disproportionately affects minority professionals. The lawsuit seeks to eliminate mandatory membership, greater representation of minorities in leadership roles, and monetary compensation. This case follows similar complaints in other states, highlighting growing dissatisfaction with NAR's membership policies within the industry. (REN)

Density Defies: Despite a two-year decline in construction activity, home building in the United States remains above pre-pandemic levels, with builders focusing on higher-density housing to address affordability concerns. The industry is shifting towards attached single-family homes, condos, and townhomes to maximize land use and meet the 4.5 million home shortage. Among the 50 largest U.S. metros, Pittsburgh, Indianapolis, Dallas, New York, and Las Vegas continue to issue the most permits compared to pre-pandemic levels. While detached home construction has decreased, attached home starts and completions have increased, reflecting a strategic response to land costs and changing market demands. The trend highlights the ongoing efforts to balance housing supply with affordability in a challenging economic landscape. (Zillow)

Cash-Out Craze: United Wholesale Mortgage (UWM) has introduced a new high-risk cash-out refinance product called Cash-Out 90, allowing borrowers to refinance with up to 89.99% loan-to-value ratio without mortgage insurance. The product targets borrowers with a minimum FICO score of 680 and a debt-to-income ratio of up to 50%, which is available for primary homes with 30-year fixed-rate terms. While this offering aims to attract more borrowers amid declining interest rates and growing competition, analysts expect UWM to compensate for the increased risk with higher mortgage rates, potentially impacting profit margins. The move comes as cash-out refinances gain popularity due to record-high home equity levels, with rate locks for such products rising significantly in recent months. (HW)

BY THE NUMBERS

85%: In the wake of recent industry policy changes, homebuilders are navigating the new landscape of real estate commissions and agent relationships. According to data from national publicly traded homebuilders, most have not yet lowered buyer agent commissions or switched to flat-fee models, with 85% reporting no changes. However, builders are adapting to new requirements by proactively addressing buyer agreements and maintaining transparency about agent compensation. While some are rethinking incentive programs to comply with post-settlement rules, the focus remains on nurturing long-standing relationships with real estate agents, whom many builders consider essential to the home-buying process. (REN)

30%: Middle-class homeowners are increasingly struggling with rising housing costs, with nearly 30% of new buyers spending more than 30% of their income on mortgage payments in 2022, double the rate from a decade ago. As housing prices outpace wages, many families find it harder to secure affordable homes, leaving them financially strained and unable to save for the future. This trend is particularly severe in states like California, where over two-thirds of middle-income buyers are "cost-burdened," contributing to a sharp decline in homeownership among the middle class. (NBC)

6%: U.S. home prices accelerated in September, growing 0.5% month-over-month - the fastest pace since April. The 6% year-over-year increase was the smallest annual gain since December, as limited housing inventory continues to put upward pressure on prices despite high mortgage rates. Thirteen of the 50 largest metro areas saw monthly price declines, with San Antonio experiencing the biggest drop at 1%. Experts expect the steady climb in home prices to persist until more inventory enters the market in spring. (Redfin)