Just Pay the NIMBYs
This article explores a proposal to incentivize housing development by offering cash payments to local residents who approve new construction projects. The strategy aims to overcome 'NIMBY' (Not In My Backyard) resistance by turning local opposition into a financial incentive for development.
Why it matters
It addresses the critical US housing shortage by proposing a novel economic solution to bypass entrenched local political opposition.
The biggest obstacle to building new housing is local resistance. But everyone has a price.
Illustration by The Atlantic. Sources: DNY59 / Getty; Nastco / Getty. July 17, 2026, 7 AM ET Share Save Just about every effort to solve America’s housing shortage runs into the iron law of NIMBY: “not in my backyard.” Whenever a development is proposed in a place where people already live, existing residents erupt in opposition, claiming the new homes will alter “neighborhood character,” increase traffic, and hurt property values. Those who would benefit the most from new housing, meanwhile, don’t yet live in the community and thus have no say in the political process. This creates an asymmetry that’s hard to overcome. Even reforms passed at the state level to override local building restrictions keep failing, because NIMBYs find clever ways to work around them.
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