Prompt 3:
Policy & Regulatory Reform Innovation
Competition Prompt:
Expanding Housing Supply
Propose an innovative local, state, or federal policy change that can effectively expand housing supply in high-cost neighborhoods across the nation.
Context
The importance of new housing in high-opportunity areas
The U.S. is facing a severe housing shortage, particularly in high-demand, high-opportunity areas where strong job markets, quality schools, and public amenities exist. According to research from Up for Growth, the nation is short more than 3.8 million housing units, with shortages most acute in metropolitan regions such as Seattle, Minneapolis, and Salt Lake City. The lack of adequate housing supply in these areas drives up housing costs, excluding middle-income families from living in high-opportunity neighborhoods and limiting economic mobility.
While housing demand continues to grow in high-opportunity areas, supply has not kept pace due to government policies and processes such as restrictive zoning, lengthy permitting processes, community opposition, and insufficient public investment in infrastructure.
Homes in high-opportunity areas also cost significantly more than those in low-opportunity areas in the same cities. In 2022, the typical home that sold in a high-opportunity U.S. neighborhood in 2022 cost 38.2% more than the typical home that sold in a low-opportunity neighborhood. As a result, households that could benefit most from access to these neighborhoods such as first-time buyers, renters, and working families are often priced out.
Why does the housing supply shortage persist?
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Zoning & Land Use Restrictions: Many cities restrict multifamily housing, ADUs, or mixed-use development in single-family zones, limiting density in desirable areas.
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Lengthy Permitting Processes: Complex and inconsistent local approval processes delay projects and increase costs for developers.
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Community Opposition (“NIMBYism”): Local resistance often stalls or blocks new housing construction, especially affordable or higher-density developments. NIMBY stands for “Not In My Back Yard” and is often used to describe individuals who do not want to see more housing built near their homes or neighborhoods.
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Infrastructure Gaps: Lack of transportation, water, and utility investments can make new housing development infeasible in high-demand areas.
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Misalignment of Government Programs: Federal, state, and local programs to support affordable housing creation often have conflicting requirements, making it difficult for housing developers to assemble the multiple sources of funding needed to make projects “pencil.” For example, a developer may qualify for Low-Income Housing Tax Credits but find that state-level housing trust fund rules impose different income eligibility thresholds.
The role of policy innovation in improving affordability
Policy innovation has historically unlocked housing growth at scale. Examples include the GI Bill’s expansion of suburban housing after WWII, federal investments in interstate highways that opened up new land for development, and state-level ADU reforms in California and many other states that have spurred widespread small-scale infill. Today, innovative policies can once again reshape the housing landscape by creating the conditions for more homes to be built in the neighborhoods where they are most needed.
This prompt challenges you to propose a policy reform that expands housing supply in high-cost, high-opportunity neighborhoods and supports affordability, equity, and long-term community resilience.
Solutions to inspire your brainstorming process
The organizations and policy models below highlight promising strategies to grow housing supply. These may spark ideas for your own solutions:
1. Zoning Reform:
Efforts such as Minneapolis’s 2040 Plan (2024 Ivory Prize finalist) and Oregon’s HB 2001 (2020 Ivory Prize finalist) eliminated single-family-only zoning, legalizing duplexes, triplexes, and fourplexes citywide. These reforms demonstrate how broad zoning changes can unlock “missing middle” housing in high cost areas.
2. Streamlined Permitting:
PermitFlow (2023 Ivory Prize winner) is a cloud-based platform that simplifies construction permitting by automating applications, tracking approvals, and managing documents. Software platforms like this can reduce errors, speed up approvals by as much as 60%, and support builders, developers, and contractors across multiple jurisdictions to deliver more housing more quickly and efficiently.
3. Incentives for Infill Development:
Muskegon, Michigan (2025 Ivory Prize finalist) is transforming vacant city-owned lots into affordable homes using tax increment financing to lower construction costs. As a result, 60% of new housing in Muskegon over the last 6 years has come from this infill program.
4. Transit-Oriented Development (TOD) Policies:
The City of San Diego (2024 Ivory Prize winner) is incentivizing TOD through an ADU Bonus Program that allows property owners to build additional ADUs in return for building deed-restricted affordable units. In Transit Priority Areas, one bonus ADU is allowed per affordable unit with no cap, while outside these areas only one bonus ADU per unit is permitted.
5. Public Engagement: Many housing developments face opposition from community members (sometimes known as NIMBYs) who will attend public meetings to voice their concerns. CoUrbanize (2021 Ivory Prize finalist) helps real estate developers engage with community members on a digital platform, allowing individuals who may not have time to attend in-person meetings to add their perspective to the public hearing process.
Creating a Compelling Pitch
To create a compelling and competitive pitch, your proposal should meet the following criteria:
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Innovative, Feasible, and Scalable
Your solution should push boundaries while remaining grounded in real-world feasibility. It should address housing challenges in a way that can be applied broadly—not just to one site or city. While case studies are encouraged to illustrate impact, your solution must clearly demonstrate its potential for scale.
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Clearly Address the Prompt
Show that you’ve done your homework. A strong pitch reflects a thoughtful analysis of the housing affordability challenges facing communities today.
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Financially Grounded
Solutions should not only be visionary but also economically viable. Highlight key financial drivers, cost assumptions, and potential funding sources. The more clearly your solution shows an understanding of market realities, the stronger your pitch will be.
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Clear Path to Implementation
Your pitch should answer the question: How would this solution go from pitch to reality? Outline specific, actionable first steps. Examples may include early partnerships, capital sources, or community engagement approaches.
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Time-Conscious Presentation Format
You will have 3 minutes to present your idea, followed by 1 minute for Q&A. Be clear, concise, and persuasive.
Getting Started
To develop a strong proposal, begin with the following steps:
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Choose the Right Prompt
Review the available prompts and select the one that most excites your group and aligns well with your team’s background, skills, and interests.
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Understand the Landscape
Investigate how this problem has been addressed in the past. Use the examples above as a starting point and explore additional case studies, organizations, policies, or innovations that relate to your chosen prompt.
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Brainstorm and Build
Think creatively. Generate new concepts or identify ways to improve on existing solutions. Focus on ideas that are both impactful and practical.
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Engage with Industry Experts
Attend sessions with industry professionals to refine your thinking. Come prepared to share your idea and ask for constructive feedback.
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Iterate and Strengthen
Based on research and expert input, continue to refine and develop your proposal. A great idea becomes stronger through thoughtful revision and collaboration.
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Consult the Ivory Innovations Team
Reach out to the Ivory Innovations Team during the office hours (3:30pm to 8pm MT) to workshop your idea and receive early input on structure, feasibility, and presentation.
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(Optional) Use the Pitch Deck Template
You can use our suggested pitch deck format to guide your final presentation.
