Can Infill Development Reduce the Housing Crisis?

America’s housing crisis has increased costs for renters and homeowners nationwide. Supply is among the root issues, as the population has outpaced new construction. While the country has plenty of land, there isn’t enough development to increase competition. Can infill development reduce the housing crisis? Here’s a guide to this modern housing concept. 

What Is Infill Development? 

Imagine walking by an empty parking lot in front of an old steel plant. While roads and restaurants are nearby, nothing happens inside this massive building. Is there a better use for this massive facility? With infill development principles, the city could repurpose the building for townhouses, apartments and office spaces. The renovations can be expensive, but it’s a worthwhile investment for the community. 

Infill development involves developing vacant lots or underutilized land in urban areas. Most cities have abandoned buildings that waste space in the community, meaning there are opportunities to repurpose them. With infilling, you gain density and reduce the urban sprawl that makes housing more expensive. Therefore, you could reduce the overall housing costs by increasing competition and meeting demand. 

Can Infill Development Reduce the Housing Crisis?

The housing crisis has worsened in nearly every corner of the country. Whether buying a house or renting a city apartment, increasing prices have hurt your budget. Increased urbanization has also made cities increasingly less affordable. For example, Columbia, South Carolina, saw an 8% rent increase between 2023 and 2024. Could infill projects help this growing southern city? 

Recent research has supported the impact of this new urban housing on market prices. A 2022 Journal of Real Estate Finance and Economics study concluded infill development and densification positively affect affordability outcomes in apartment submarkets. That said, the researchers also found it could contribute to widening wealth disparities, so localities must be careful when constructing these facilities. 

What Are the Pros and Cons?

City planners can wield infill development through different initiatives, though it’s not always a silver bullet for the housing crisis. What are its pros and cons? Here are the primary positives to take away from this concept:

• Conserving resources: The good thing about this development is the existing infrastructure. With a building present, you can conserve resources by not using as much steel, concrete and other energy-intensive materials. 
• Attractive locations: If you pick the right place, infill development can turn abandoned buildings into major hubs. For example, an abandoned factory downtown could become a shopping mall or a mixed-use office space.  
• Sustainability: Renovating an old building could introduce sustainable features to the new development. With decreasing energy costs, solar could be more attainable and make the facility more efficient. 

While infill’s benefits are easy to see, there are some cons you should consider before this undertaking:

• Upfront costs: Despite not using a new building, the renovation can be expensive. The infill development could require demolition, new sewage systems or costly labor. 
• Delays and distractions: Construction doesn’t happen overnight. The renovation could take months or even years, depending on the red tape. Experts say resource allocation can cause delays if there aren’t enough skilled workers.  
• Complicated laws: Sometimes, the development can’t start due to existing zoning laws. If the building is in a business district, you might be unable to convert it into a housing structure.  

What Are Good Examples of Infill Development? 

Infill development is a growing concept nationwide as cities try to solve the housing crisis. Where have local officials been successful? Here are # examples to inspire other towns and projects. 

1. Alexandria, Virginia

Start in Alexandria, Virginia, just outside the nation’s capital. Along the Potomac River, this city employed infill development in one of its historic districts. When you arrive at Chatham Square, you’ll notice lovely townhouses and green spaces with brick sidewalks. Alexandria has revitalized the area by replacing old public housing from World War II with new multifamily complexes. 

Chatham Square has 100 townhomes at market rate, emphasizing affordability. Additionally, 52 subsidized rental homes expand the housing opportunities. 

2. Sacramento, California

When you think about California, you imagine expensive living and laid-back lifestyles. However, Sacramento has flipped the script on the housing shortage in McClellan Park. This massive facility was an Air Force base before its 1995 closing. While the area lost jobs and revenue, Sacramento revitalized it with a business park. Now, it’s booming. 

Renovating the existing land has led to new hotels, apartments, houses and plentiful office spaces. You can also take the family to the local aerospace museum to learn history and science. 

3. Portland, Oregon

Travel up the Pacific Coast Highway to Portland, Oregon, and find the old Belmont Dairy building. In the late 1990s, developers converted the Foremost Dairy Project — a 26,000-square-foot facility — into loft apartments and retail space. Now, there are grocery stores and restaurants to foster a healthy community and urbanization. 

Belmont Dairy is one of Portland’s early success stories, considering it only took two years to increase the number of businesses by 50%. Residents can thank it for turning around this part of the city. 

4. Spokane, Washington

Industries can rapidly change and leave some places behind. For example, Spokane, Washington, supported steam engines in the early 20th century. However, the transition to diesel meant the West Spokane Yard was no longer necessary for train services. The building sat vacant for decades until developers decided to transform it into Kendall Yards. 

Now, the multi-use complex features housing and parks for families to enjoy. Cleaning up the mess took a few years, but it’s an excellent example of infill development. 

5. Pittsburgh, Pennsylvania

Pittsburgh is home to the Steelers, so you might not be surprised to find steel mills here. The Foundry on 41st Street was an essential manufacturing hub in the Northeast but became irrelevant once the 1980s arrived. While the foundry no longer produces steel, it houses people along the Allegheny River in a splendid new apartment complex. 

The Foundry at 41st now has nearly 200 units and shows modern design in an old city. With this superb project, others could follow inside the various abandoned buildings in the Steel City. 

Finding Modern Solutions to the Housing Crisis

Whether in New York or New Mexico, there isn’t enough housing for everyone. How can cities and states fix the crisis, especially with land limitations? One solution is to leverage infill development because it can reduce the housing crisis. Employing this concept increases density and introduces competition to reduce the high rent and housing prices.