4 minute read
Embrace Variety
Creativity with future housing developments is required to solve the housing shortage
BY DOUG MOTLEY
CURRENTLY, Delaware has an 18,000-20,000-housing unit shortage while the United States faces a 3-7 million deficiency, depending on what source you read. The issue is compounded by continued growth in the U.S. population while also more and more people are falling in love with, and moving to, the charming First State.
To address the pressing issue of the housing shortage, I believe it is crucial to consider and take action to influence both the supply side and demand side of the equation. One of the best aspects of the state is the ability for people to connect to make change happen—and we must in order to compete with other states and to take care of our residents. Here are a few of the key levers we can address to make an impact:
HOUSING VARIETY
Delaware’s housing stock (particularly excluding Wilmington) primarily consists of single-family detached homes. While these homes meet the needs of many, there are large segments of the population that prefer—or require—a different type of housing. This preference could be driven by accessibility, affordability, location, family size, services needed, or other factors. Encouraging and enabling the creation of a wider variety of housing types, including traditional apartments, cottages, attached townhomes/duplexes, garage apartments, and other ancillary dwellings would provide a broader set of options and price points for Delawareans to choose from while consuming less space.
ENABLING LEGISLATION AND ZONING
There are multiple reasons why we don’t have more of these housing options today, but a significant one is the applicable land use code in each jurisdiction. If the existing zoning allows for lower density single family homes, a zoning change would be required to enable building these other housing types. Most developers will avoid the time and risk associated with a potential rezoning. Local elected officials that vote on these rezoning requests are often faced with a vocal minority opposing increased density (also known as the Not In My Back Yard, or NIMBY, pressures). Ironically, opposing density results in more sprawl, more of the same housing, and further taxes public infrastructure. Ultimately, we need leadership who recognizes the benefits that more housing options can provide and are willing to find policy solutions to encourage more of it.
EMPLOYMENT GROWTH AND EDUCATION
There is also the opportunity to impact housing needs and affordability by increasing employment opportunities for Delawareans. By ensuring our state policies are businessfriendly, we’re able to attract a diverse set of employers to the state who we can bring higher paying job opportunities to our residents. It is also important to provide workforce education opportunities, both to help people transition to new, higher paying positions or careers and to have a qualified workforce that attracts even more employers. Improving the employment opportunities available, including the ability to earn higher paying jobs, will help change the affordability side of the housing equation by way of impacting incomes.
At JLAM, we have invested in and developed housing in the seasonal, workforce, market rate, and seniors housing categories. We designed investment strategies that seek to provide more housing options. In every project we develop, we strive to incorporate new and creative solutions. Our current pipeline includes market-rate apartments, workforce housing, cottages, and multiple build-for-rent townhome communities.
There are significant challenges developers face when trying to create more housing options to meet market demand, but JLAM’s ability to take the long view in how our projects will help make Delaware a better place to live, work, and play has enabled us to deliver countless successful projects.
Doug Motley is the co-managing principal at JLAM (Jack Lingo Asset Management) and chair of the State of Delaware Council on Housing.
