Tag Archives: property values

Suburban treehouse illustrates typical NIMBY debates

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A man in Arlington Heights, Illinois built a fairly large treehouse in his backyard: “It has a wraparound deck, two levels, small windows, siding and roofing that mimics the family home’s.” It drew the attention of several neighbors who then complained to the village who subsequently passed new regulations for treehouses. However, since this treehouse was built before the new regulations, it can stay put.

This could just be a local issue except that the pattern of events fits many NIMBY discussions in suburban communities. Here are some of the comments made by people involved in the story:

Village Manager Bill Dixon said treehouses have not been a major issue in town and urged the village board not to overreact to one particular case, no matter how bad.

“There are 18,000 single-family homes in town, but this is the only one we’re hearing about,” he said.

But Trustee Thomas Glasgow, who lives in the neighborhood, said the treehouse is overwhelming. He believes property values in the area have diminished as a result.

At Glasgow’s recommendation, the board agreed to limit the structures to the height of the home on the property.

Mayor Arlene Mulder expressed concern, however, that the code could effectively ban treehouses for some properties.

But Trustee Joseph Farwell said: “Sometimes, you can’t build exactly what you want where you want it because you live in a community.”…

But Piotrowski [one of the neighbors], who spoke at a recent village board meeting, said the new rules don’t go far enough. He wants to see the houses banned all together because he believes they are not safe.

For his part, Belmonte said the whole conflict could have been avoided if Piotrowski had raised his concerns right from the start.

In one story, you have many of the elements of a typical NIMBY issue: a person does something with their property that some neighbors do not like. These neighbors argue the action reduces property values and raises safety concerns. The community ends up creating new regulations to avoid such issues in the future while knowing that they may be limiting people from doing similar things. The property owner says that if the neighbors had simply come to him first, none of the rest of this had to happen.

The key quote to me comes from one of the village trustees: “Sometimes, you can’t build exactly what you want where you want it because you live in a community.” This is true – communities have all sorts of regulations and zoning in place to help limit some of these issues. And much of this has been codified even further in homeowners associations that really limit some of the possible actions by individual owners. Homeowners submit to these regulations because they don’t want to have to worry about what their neighbors might do and to protect their all important housing values. But the enduring question from this story and other similar cases is this: where does a community draw the line between the rights of individual property owners and the interests of neighbors and the rest of the community? At least in Arlington Heights, future treehouse builders will be more limited in what they construct in order to balance these two competing interests.

The importance of property values to NIMBYism

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NIMBYism is cited as a common American issue as homeowners often fight hard to protect their pristine homes and neighborhoods. I was reminded of this by an article looking at seven neighbors that damage property values:

Here, the seven suprising neighbors that can reduce your home’s value:

Power Plants. The data is fairly clear on the impact of power plants on nearby home values — it usually hurts them. A study from the University of California at Berkeley shows that home values within two miles of a power plant can decrease between 4% and 7%.

Landfills. A study from the Pima County (Arizona) Assessor’s office shows that a subdivision located near a landfill (and all other residential factors being equal, like house size, school quality and residential incomes) loses 6% to 10% in value compared to a subdivision that isn’t located near a dump.

Robert A. Simons, an urban planning professor at Cleveland State University, says that if you live within two miles of a Superfund site (a landfill that the government designates as a hazardous waste site), your home’s value could decline by up to 15%.

Sex Offenders. Living in close proximity to a registered sex offender is one of the biggest downward drivers of home values. Researchers at Longwood University’s College of Business & Economics conclude that the closer you live to a sex offender, the more your home will depreciate. In the paper, Estimating the Effect of Crime Risk on Property Values and Time on Market: Evidence from Megan’s Law in Virginia, Longwood researchers say, “the presence of a registered sex offender living within one-tenth of a mile reduces home values by about 9%, and these same homes take as much as 10% longer to sell than homes not located near registered sex offenders.”

Delinquent Bill Payers. One surprising way that neighbors can bring down the value of surrounding homes, especially in town home or condo communities, is by not paying their maintenance fees or their mortgages. “Bad neighbors bring values down by not paying their maintenance fees, in some cases their mortgage payments, and not maintaining the home’s appearance,” says Pordes. “These homeowners usually do not care about real estate values.”

Foreclosed Homes. Perhaps the biggest single factor that drives nearby home values down is a foreclosure. A recent study by the Massachusetts Institute of Technology concludes that a neighbor’s foreclosed home can slash the value of homes within 250 feet of the foreclosed properties by an average of 27%. Says Federal Reserve Governor Joseph Tracy recently in his economic outlook for 2011: “The growing inventory of defaulted mortgages continues to weigh down any recovery in the housing market… Problems in housing markets can impact economic growth.”

Lackluster Landscaping. Studies show that lawn care has a big impact on surrounding home values. Virginia Tech University released a report stating that pristine landscaping can jack up the value of a home by 5% to 10%. But if the lawn looks like it just hosted the world rugby tournament, it can be a green thumb to the eye of local home prices.

Closed Schools. Sometimes, neighborhood problems can stem from local government action. For example, if a cash-strapped city or town closes a neighborhood school, that can easily steer home values south. The National Association of Realtors says that 75% of home shoppers, the quality and availability of schools in the neighborhood is either “somewhat important” or “very important.”

As the article notes, what an individual homeowner can do about these situations might be limited. Perhaps the best way to avoid this is simply to do one’s homework before moving into a neighborhood to assess what has happened or might happen in the future. This could involve checking community websites, reading local news, and talking with current residents. But, there are always trade-offs involved in this process. If someone desires a cheaper home, perhaps they might move into an area that has one of these conditions.

At the same time, there are plenty of land uses or neighbors that are not cited in the article where homeowners band together to protect their community. Here are a few recent situations in the Chicago region: a battle over affordable housing in Winnetka (with an update here), Naperville residents opposed to Show-Me’s and Evanston residents opposed to a Tilted Kilt restaurant, and a debate over lighting in Barrington Hills. Compared to a power plant or landfill, these uses seem much less obvious and yet are important concerns for residents of wealthier communities.

On the whole, this article illustrates that one of the primary goals of a homeowner is to protect and/or grow their property values. In order to do this, a homeowner may have to be in opposition to larger neighborhood or community goals. After all, power plants and landfills and sex offenders have to be somewhere. But, if you have the economic means in the United States, you generally move to nicer and nicer neighborhoods where these NIMBY concerns are likely reduced. It would be interesting to track how people’s neighborhood or suburban moves over the years progressively place them further and further away from such property value lowering uses.

Green nimbyism

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NIMBY (Not In My Backyard) attitudes are typically associated with suburban sprawl and McMansions. So what happens when NIMBY is associated with more eco-friendly projects?

Nimbyism is nothing new. It’s even logical sometimes, perhaps not always deserving of opprobrium. After all, it is one thing to be a passionate proponent of recycling, and another to welcome a particular recycling plant — with the attendant garbage-truck traffic — on your street. General environmental principles may be at odds with convenience or even local environmental consequences.

But policymakers in the United States have been repeatedly frustrated by constituents who profess to worry about the climate and count themselves as environmentalists, but prove unwilling to adjust their lifestyles or change their behavior in any significant way…

Robert B. Cialdini, an emeritus professor at Arizona State University who studies environmental behaviors, points to two phenomena:

Humans hew to the “normative” behaviors of their community. In places where bike lanes or wind turbines or B.R.T. systems are seen as an integral part of society, people tend not protest a new one; if they are not the norm, they will. Second, whatever feelings people have about abstract issues like the environment, in practice they react more passionately to immediate rewards and punishments (like a ready parking space) than distant consequences (like the threat of warming).

Based on Cialdini’s ideas, perhaps it will just take one or two of these neighborhoods or locations adopting these projects so that it becomes normative. But who will be willing to go first? And what is the critical mass when such developments become normal?

While some might take this as evidence that certain people aren’t willing to sacrifice for green projects, I think we can take a broader view: in general, Americans don’t like two things that could possibly occur with the construction of something nearby.

1. The state in which they purchased their home or housing unit is altered. The idyllic scene they once bought into may not last forever. Whether this is due to a nearby condo building blocking the view or a new subdivision taking away a once-open field, Americans do not these sorts of changes. They paid money for a particular setting and want to maintain that setting as long as possible.

2. Their property values might be reduced. Because of the amount of money invested in homes plus hopes that many have about making at least some money when selling their homes somewhere down the line plus the amenities that come in living in places with higher property values, property values drive a lot of development decisions.

Developments like these green projects can be difficult to push through, particularly when those in opposition have money or status. Research has shown that typical dirty types of development, like power plants or landfills or public housing projects, tend to get placed in poorer areas where the people are less-equipped to fight back. Could these green projects be headed for similar places?

Suburban mayors look for Mayor Emanuel’s help

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There is often a tension between a big city and suburbs: these communities have different goals and access to resources. With a new mayor in Chicago, suburban leaders say they are looking to work with Rahm Emanuel:

But suburban leaders said Wednesday that they expect Chicago Mayor-elect Rahm Emanuel to recognize that the city he will soon lead and the surrounding communities are better off working together instead of fighting each other.

“I think, with his extensive government experience, he understands that we’re all in this together,” said Elmwood Park Village President Peter Silvestri, whose town is in Illinois’ 5th Congressional District, a seat once held by Emanuel.

Silvestri was among several leaders who also said they were hopeful that Emanuel, who has a reputation as a bare-knuckled political operative, will follow Mayor Richard Daley’s collaborative lead…

Among them is Elk Grove Village Mayor Craig Johnson, who fought bitterly with Daley over the expansion of O’Hare. He said he hoped Emanuel “will respect the concerns of his neighbor and work regionally.”

Emanuel supports  a Chicago casino, an idea that hasn’t gone over well in Des Plaines, which will soon open a casino of its own…

Naperville Mayor George Pradel was another suburban leader who said he hoped Emanuel would maintain a strong relationship with his suburban counterparts.

The Chicago mayor has influence on several issues that concern Naperville, including ongoing plans to build a western bypass around O’Hare and rates for Lake Michigan water, Pradel said. Naperville is the largest suburban user of water from the lake.

As a congressman, Emanuel supported an airport in south suburban Peotone and he has voiced support for extending the CTA’s Red Line to 130th Street — two important issues in the south suburbs.

Perhaps these suburban leaders do want to work with Emanuel but to me, it sounds like they are more interested in getting Emanuel’s support for their interests and projects. Perhaps Emanuel could ask these suburban leaders: and if I help you, how does your suburb plan to help the City of Chicago or the larger Chicago region?

This may be a cynical interpretation but this is the long-running history of suburban communities: many are not interested in regional or metropolitan issues except when they might threaten the quality of life in their immediate community. Going back to the 1890s and 1900s, suburbs stopped wanting to be annexed into the big city as they could provide their own basic services (water, sewers, electricity, etc.) and didn’t want to associate with cities which were seen as dirty and crime-ridden. Today, suburbs thrive on this idea of local rule: local taxes should go into local services, such as public school districts and basic local services such as police and fire. Local or regional projects are often judged on how particular suburban communities will benefit, particularly as it pertains to their tax base and property values.

In the long run, how many of these suburban communities are willing to help Mayor Emanuel?

The new Congress marked by more suburban, rural, and small town members?

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Joel Kotkin continues to make the case that the political changes in the new Congress are marked by a city/suburb split. Kotkin explains this shift:

This contrasts dramatically with the last Congress. Virtually its entire leadership — from former House Speaker Nancy Pelosi (D-Calif.) on down — represented either the urban core or affluent, close-in suburbs of large metropolitan areas. Powerful old lions like Reps. Charles Rangel (D-N.Y.) of Harlem, Henry Waxman (D-Calif.) of Los Angeles and Barney Frank (D-Mass.) of Newton, an affluent, close-in Boston suburb, roamed…

The new House leaders are, for the most part, from small towns, suburbs and interior cities. Most GOP pickups came from precisely these regions — particularly in the South and Midwest.

Kotkin then goes on to talk about the possible consequences of the change in leadership:

This change in geography also suggests a shift in the economic balance of power. The old Congress owed its allegiance largely to the “social-industrial” complex around Washington, Wall Street, public-sector unions, large universities and the emergent, highly subsidized alternative-energy industry. In contrast, the new House leaders largely represent districts tied to more traditional energy development, manufacturing and agriculture.

The urban-centered environmental movement’s much-hyped talk of “green jobs,” so popular in Obama-dominated Washington, is now likely to be supplanted by a concern with the more than 700,000 jobs directly related to fossil fuel production. Greater emphasis may be placed on ensuring that electric power rates are low enough to keep U.S. industry competitive.

The Obama administration’s land-use policies will also be forced to shift. Sums lavished on “smart growth” grants to regions, high-speed rail and new light-rail transit are likely to face tough obstacles in this Congress.

Kotkin is not alone in discussing these potential consequences: the Infrastructurist has been tracking for a while how Republican control might threaten plans for high-speed rail, infrastructure, and green programs.

But I wonder if suburban/exurban/more rural Congressmen will really express these kinds of political sensibilities in Congress. Traditionally, local suburban politics has been marked by a lack of partisanship (with many municipal races not involving the two major parties) and an emphasis on issues like keeping property taxes low, ensuring property values, and keeping crime rates low. Do these concerns translate to a national level where everything becomes a political skirmish and politicians consider the national budget, defense spending, entitlement programs, and so on? Can Kotkin or others point to a current or past member of Congress who has exemplified a suburban or exurban approach to national government that is distinct from an urban approach?

Homeowners’ associations and flying flags

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An Arizona man is fighting his homeowners’ association over flying a “Don’t Tread On Me Flag.” While this may appear to be a political situation, it is a broader issue: there have been numerous battles over the years between residents and homeowners’ associations over things like flying flags.

On one hand, homeowners’ associations are trying to maintain a certain image in the neighborhood. On the other hand, their rules are extensive and can often appear heavy-handed. However, this Arizona man and many others have a few options that would limit situations like these: don’t move into neighborhoods with such associations (and they are quite common) and know what the restrictions are before purchasing or become involved with the local association and change the rules. As in this situation, two American desires are in conflict: the desire to maintain some local control (and perhaps boost property values) and the desire to be individuals who can express themselves.

Overall, homeowners’ associations are common today in America. According to the Community Associations Institute, there are over 305,000 “association-governed communities” with over 60 million residents.