Arlington, Virginia Passes Important Housing Reforms, But More Work To Be Done

A few days ago, the board of Arlington County, Virginia voted unanimously to allow multi-family housing structures—often called “missing middle” housing—in neighborhoods that were exclusively zoned for single family homes. This is a great win for supporters of more housing, but there is more work to do.

Arlington has some of the highest housing prices in Virginia. According to data from Zillow, the typical home in Arlington is valued at $747,335, which is the 17th highest in the state. And it is not unique among Northern Virginia (NoVA) cities: The Washington D.C. metro area, where Arlington is located, has 28 of the 30 most expensive housing markets in Virginia.

The only way to keep housing prices stable is to build enough housing to meet demand, and the only way to bring prices down is to expand supply faster than demand. Land-use regulations such as minimum lot sizes, height requirements, and density restrictions that limit the number of units on lots—like the one Arlington just reformed—limit the amount of new housing that can be built. A large body of research shows that restricting new housing via land-use regulations increases housing prices.

Arlington’s new housing policy allows landowners to construct duplexes to six-plexes by right, meaning they do not need any special permission from the city. Previously, these zones only allowed detached single-family homes. The new policy changes will not make Arlington more affordable overnight, but over time, as the current housing stock wears out, they will lead to more housing options, especially for middle- and lower-income families.

While the rule changes are a great first step, there is room for improvement. There is a cap of 58 new structures per year for the first five years and the allowed structures are dispersed across the city’s different zoning districts. This is not ideal since housing demand may be greater in some districts than others. Structures should be built where the demand is, not where government wants them.

The policy also contains minimum parking requirements. Research shows such requirements increase the cost of housing and are often unnecessary. Developers have an incentive to build the parking buyers and renters want. Government rules that require more parking than needed waste valuable land. If Arlington is worried about a lack of street parking, it can change the amount it currently charges for such parking to align demand with supply.

Other unfortunate provisions include a mandate to provide a specific number of shade trees for each structure, restrictions on accessory dwelling units (ADUs), and maximum floor area and height restrictions that may limit the financial feasibility of certain projects.

Going forward, Arlington’s citizens and policymakers should consider eliminating all parking minimums (like Buffalo, NY did), making it easier to build ADUs, and reducing minimum lot sizes (like Houston did).

Still, Arlington’s reforms could be an example for statewide changes. Last year, Virginia Governor Glenn Youngkin indicated his support for housing reforms. Though light on details, Youngkin mentioned putting guardrails on how local governments could use zoning. Arlington’s new limit on the use of single-family zoning could be the blueprint for a wider reaching state policy that makes it easier to build housing in cities across Virginia. Already, pro-housing reformers such as YIMBYs of Northern Virginia and YIMBY Action are generating support for housing reform in Hampton Roads, Richmond, and Charlottesville.

Supporting housing reform is hard. People are naturally worried about how changes will impact them. Even among my friends and colleagues who instinctively support free markets and the sanctity of property rights, there are concerns that allowing six-plexes in their neighborhoods will expose them to more noise, congestion, and the many inconveniences of new construction.

While such fears are not surprising, they are not reasons to restrict new housing. Pleasant, amenity-filled neighborhoods should be open to people of all income levels. The only way to increase access to Virginia’s best cities and neighborhoods is to build more housing. Arlington’s recent reforms show that it wants to welcome new neighbors, not reject them. The rest of Virginia should follow its lead.

Source: https://www.forbes.com/sites/adammillsap/2023/03/24/arlington-virginia-passes-important-housing-reforms-but-more-work-to-be-done/