Homeowners Saying “Yes, In My Back Yard”: Evidence from Israel

Abstract

The role of homeowners in curbing housing development, leading to shortages and lack of affordability, is a dominant explanation for tightened regulation and limited housing supply in high-demand areas. This paper shows that homeowners can also play the opposite role, as pro-development stakeholders. Original research based on permitting data, a survey of owners and analysis of planning objections from Israel shows that the self-interest of owners does not necessarily lead them to oppose development. Indeed, when owners stand to directly reap the gains of densification they are very likely to embrace landowner preferences, demanding redevelopment and further upzoning of their buildings. The paper makes two contributions. One is theoretical: elaborating conditions that shape homeowners’ interests and the politics of planning. The other is policy-relevant: highlighting a politically feasible path for densifying high-demand neighborhoods and regions.