Urban Planning

Time for liberals to become YIMBYs

Australia faces a housing crisis that stifles opportunity, burdens young people, and hampers economic growth. The root of the problem around the world lies in a planning system that empowers NIMBYs

Australia faces a housing crisis that stifles opportunity, burdens young people, and hampers economic growth. The root of the problem around the world lies in a planning system that empowers NIMBYs

A liberal YIMBY ("Yes In My Back Yard") approach offers a solution grounded in free-market principles, individual liberty, and economic efficiency. This article makes the case for liberal YIMBYism as a path to a freer, more prosperous society.

The Housing Crisis: A Barrier to Freedom

Australia’s housing shortage is no secret. Prices have soared, with the average home now costing over eight times the median income in many areas. Young people, in particular, are locked out of homeownership, forced into expensive rentals or stuck living with parents. This isn’t just an economic issue—it’s a matter of personal freedom. The ability to own property, to have a stake in society, is a cornerstone of individual liberty. When restrictive planning laws inflate costs and limit supply, they erode that liberty, concentrating wealth among existing homeowners while leaving others behind.

A new report from the UK’s IEA points out that the planning system, designed to manage land use, has become a tool for entrenched interests to veto progress. NIMBYs—often homeowners protecting their property values or local aesthetics—wield disproportionate influence, blocking projects that could alleviate the crisis. This creates a market distortion, where supply is artificially constrained, prices skyrocket, and ordinary people are priced out. From a liberal perspective, this is an affront to both economic freedom and fairness.

YIMBYism: A Liberal Solution

YIMBYism, at its core, is about saying “yes” to development—more homes, more infrastructure, more opportunity. Unlike top-down, state-driven approaches, liberal YIMBYism emphasizes market-led solutions. It calls for deregulating the planning system, reducing bureaucratic hurdles, and empowering property owners to build. This aligns with classical liberal values: prioritizing individual choice, property rights, and the power of markets to allocate resources efficiently.

As the IEA argues, liberal YIMBYism doesn’t mean bulldozing green spaces or ignoring community concerns. Instead, it seeks a permissive planning system where the default is to allow development unless there’s a compelling reason to block it. This flips the current dynamic, where NIMBYs can halt projects on flimsy grounds, from “disrupting the view” to vague fears about “community character.” A liberal approach trusts markets to meet demand, ensuring homes are built where people want to live—near jobs, schools, and transport hubs.

The Economic and Social Case

The economic benefits of liberal YIMBYism are clear. Increasing housing supply would lower prices, making homeownership accessible to more people. The IEA cites estimates suggesting that a sustained period of building could boost GDP by up to 30% by expanding access to high-opportunity areas. This isn’t just about numbers—it’s about enabling people to move to where jobs are, fostering economic mobility and innovation.

Socially, YIMBYism addresses generational inequity. Younger generations, burdened by high rents and stagnant wages, are increasingly alienated from a system that seems rigged against them. The IEA notes that demographic trends point to a future of lower growth and higher taxes unless action is taken. By liberalizing planning laws, we can build a Britain that works for young people, giving them a stake in the economy and a reason to believe in the promise of a free society.

Overcoming Objections

Critics of YIMBYism often argue it prioritizes profit over community or environment. But liberal YIMBYism isn’t about unchecked development—it’s about rational, market-driven growth. Environmental concerns can be addressed through clear, consistent regulations, not blanket bans on building. Aesthetic objections, often a mask for protecting property values, shouldn’t override the public good. As the IEA puts it, “beggars can’t be choosers” in a housing crisis—functional, affordable homes are better than no homes at all.

Another objection comes from those who fear YIMBYism ignores local preferences. Yet the current system doesn’t reflect true local demand—it amplifies the voices of a vocal minority. A liberal YIMBY approach would empower property owners and developers to respond to market signals, ensuring homes are built where they’re needed most. This isn’t about forcing change on communities; it’s about giving people the freedom to build and live where they choose.

A Call to Action

Australia’s housing crisis is a test of whether we believe in the principles of a free society. Liberal YIMBYism offers a path forward: deregulate planning, respect property rights, and let markets work. This isn’t a utopian vision—it’s a practical step toward a more prosperous, equitable Australia. As the IEA’s work underscores, the alternative is a future of stagnation, high taxes, and lost opportunities.

For those who value liberty, the message is clear: embrace YIMBYism. Support policies that free up land, streamline approvals, and back builders over blockers. Join the movement to say “Yes In My Back Yard” and build a Australia where everyone has a chance to thrive.

This article is inspired by the IEA’s advocacy for free-market solutions and draws on their analysis of the housing crisis. For more, explore their work at insider.iea.org.uk.

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