Summary:
Opponents of Light-touch Density (LTD) infill argue that it will lead to outright home price declines or, at the very least, slower home price appreciation (HPA). However, evidence from Charlotte and Seattle shows that the construction of LTD housing—such as duplexes and townhomes—does not adversely impact HPA of single-family detached (SFD) homes in the LTD infill neighborhoods compared to the HPA of SFD homes in SFD-only neighborhoods. In both cities, LTD development added tens of thousands of new homes while having no adverse effect on the HPA of adjacent SFD properties.
This makes LTD a compelling, market-driven approach to expanding housing supply without triggering the common concern of declining home values. While our analysis is limited to Charlotte and Seattle, the underlying mechanism—gradual replacement of older homes with moderately denser housing—is likely to operate similarly in other markets. Given the consistency of outcomes across two very different housing environments, it is reasonable to expect similar results in other cities that pursue LTD reforms.