The NAR Perspective: Position On Growth Management by Dennis Cronk Over the past several years, we've experienced an extraordinary, unprecedented economic expansion. During the 1990s, homeownership grew 14 percent, capped in 1999 with a record-breaking five-million-plus existing home sales. The demand for housing has never been higher, and it will continue to stay strong. Demographers predict that by 2010, the United States must house 24.5 million more Americans than in the year 2000. Everyone likes that kind of growth. But prosperity ushers in other issues. Communities nationwide are feeling the pressure to channel this prosperity into manageable growth. Millions of Americans have prospered in this strong economy - now do we slam the door and hang a "Closed" sign over our cities and towns? Or are we willing to let the marketplace generate continued economic growth, with resulting benefits to the housing and job markets, to say nothing of the tax base? Our communities are not museums; they evolve dynamically to meet the needs of residents. How do we meet those needs while preserving the quality of life that we all value: green space, clean air and water, manageable traffic and good community services? These are difficult questions, and they engage the nation's licensed professional REALTORS® everyday. Because REALTORS are involved in all aspects of residential and commercial real estate, they are on the front line of the growth debate. The ability of local governments to respond effectively to the challenge of rapid growth affects not only our business, but also the vital interests of our clients and customers - homeowners, property owners, and tenants. To our clients, the community surrounding the property is as important as the property itself. We don't just sell homes - we sell neighborhoods. We hear a great deal about the downside of unchecked growth. Poorly managed growth threatens those neighborhoods with traffic congestion, environmental degradation and overburdened public services. But we don't hear much about the other side of the coin - the ultimate cost to the community of no-growth policies. Excessive restrictions stifle the economy, distort real estate values, and limit choice. In particular, restrictions can price housing far beyond the reach of first-time buyers. Housing affordability is a critical issue in today's real estate market when prices and mortgage rates are up and inventory is down. Maintaining a community's livability and affordability requires striking a most delicate balance. State and federal mandates, with a one-size-fits-all approach, can't be responsive to the nuances of the local marketplace. REALTORS, individually and through their state and local associations, have become outspoken advocates for thoughtful land use and growth in their communities and states. REALTORS are dealmakers; they're suited by experience and inclination to seek solutions that assure choice and affordability for buyers without compromising the very qualities that make their communities desirable. Last year, 1999 NAR President Sharon Millett, appointed a Presidential Advisory Group on Smart Growth to identify which resources REALTORS need to help their communities find reasonable approaches to growth management. To help meet this goal, the group conducted a series of surveys to assess public attitudes on growth issues. This research clearly showed that most homeowners and renters believe there is a connection between restrictions on growth, higher housing prices and the ability of first time buyers to afford a home. The latest survey, completed in February, found that 60 percent of renters and 55 percent of homeowners believe restrictions or limits on growth have contributed to housing price increases. Seventy-four percent of renters said higher housing costs could prevent them from buying their first home, while 70 percent of the homeowners said higher housing costs could prevent them from buying a better home in a nicer area. The survey also found that: Public safety, good schools, & affordability remain the top reasons for deciding where to live. Growth concerns are at the bottom of the list. Ninety-five percent said neighbors and local governments, not states or the federal government, should make decisions concerning growth and related issues. Sixty-eight percent said market forces, rather than governments, should regulate factors concerning growth. Three-quarters of the sample said governmental policies should employ incentives rather than penalties to encourage communities to plan in ways that prevent growth-related problems. Every property transaction shapes the life of the community -- whether it's a family that selects that perfect home, a first-time buyer who makes a commitment to homeownership, or a business that puts down roots. REALTORS who participate in those transactions are well positioned to help their communities solve the challenges of growth creatively, collectively, and locally. Our new "blueprint" for action is designed to encourage REALTOR involvement in local growth-related issues. This grassroots initiative, scheduled to begin in May, will reach thousands of Realtors locally through NAR's 1600 state and local associations. We plan to work with Realtor organizations nationwide to launch an unprecedented, comprehensive program to help policy-makers address the challenge of growth through local decision-making, research, sharing of expertise, creative problem-solving and community consensus. At the national level, NAR will serve primarily as a catalyst for involvement by providing bi-annual public opinion research, educational tools and information that state and local associations can tailor to meet their specific needs in working with policy-makers. The initiative is based on five principles that will guide the role Realtors will play in building community consensus to solve growth-related issues. These principles include: fostering housing opportunities at all market levels, encouraging economic development, protecting the environment, promoting fair and equitable financing mechanisms, stimulating community revitalization and protecting private property rights. Since land use decisions directly affect quality of life, as well real estate development costs, real estate professionals have a responsibility to promote sound and fiscally prudent land use policies. All of us in the real estate industry have an important stake in well-planned growth. Our position is not anti-growth or pro-growth. It's pro-community. | 
