AI could be ‘force multiplier’ in tackling housing crisis, expert says

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Cities across the country are using the technology to ease permitting approvals and backlogs, and one leader called on them to lean in further and set ambitious but achievable goals.
Few issues vex state and local leaders like the housing and affordability crisis that seemingly plagues every town, city and village, but one expert argues that artificial intelligence can help.
In a letter to city leaders early last month, Rochelle Haynes, senior vice president and managing director for Bloomberg Philanthropies’ What Works Cities initiative, said investing in local data and increasing the use of AI are “enablers of progress,” and can help cities do the “unglamorous but critical work” of boosting their core operations to build more homes.
“When it comes to AI technology, we have an exciting moment to be able to think differently about what has been a protracted issue,” Haynes said in a recent interview. “[Cities], to me, are always innovative and creative. They're at the forefront of these issues.”
Haynes pointed to various cities within the What Works Cities network as examples of what is possible. The effort, launched in 2017, recognizes cities that use data to help them make policy decisions, improve services and allocate funding.
She noted that Edmonton, Alberta in Canada uses AI to auto-review single and semi-detached house building permit applications instantly, reducing what used to be a 20-day wait for approval. Cambridge, Massachusetts, meanwhile, used detailed housing data to support changes to its zoning laws, an effort that What Works Cities said has already driven new construction of affordable housing and multi-family buildings. And Haynes applauded San Jose, California, for using AI to speed up review of permitting applications for accessory dwelling units.
While using AI for permitting approvals and review may not be an immediately eye-catching use, it is helping remove what Haynes described as “bottlenecks” that have existed in cities’ planning and zoning departments for years. Paper-based applications would typically take months to be reviewed and approved — or amended — by hand, pushing construction timelines far into the future.
“It's really exciting to see cities lean into not just the big, fancy things that AI can do, which is super exciting,” Haynes said. “I love that at this phase, cities are saying, ‘No, this is my issue, and this is how technology can help me, and particularly AI technology can help advance it.’ When you also think about how cities are limited on budgets right now as well, being smart with technology helps fills those gaps.”
Haynes identified three things city leaders can do next when using AI to help solve their housing challenges. First, she said they should set “ambitious but achievable goals” and then track their progress, especially given the need for close collaboration between the public and private sectors, finance, nonprofits and others.
She also urged cities to think about which areas of housing they can have the greatest impact. For example, local leaders do not control interest rates, but do have control over the permitting process, zoning and the ability to make unused public land available for housing.
What Works Cities highlighted Philadelphia’s use of a performance management process to reduce its Zoning Board of Adjustment’s appeal process from a high of 78 days to a low of 12 days over a seven-month period as an example of success. And in Denver a cross-departmental permitting “tiger team” used data to collaborate on accelerating processes and reducing review times by 30%.
Finally, Haynes said AI can exist as a “force multiplier” that can help speed up various processes. That is not just limited to permitting, either: Pittsburgh uses AI to help review rental housing vouchers. The technology could help streamline housing rules, find land that can be built on, answer residents’ questions, and more.
Finding their purpose for using AI is a crucial first step for city leaders to take, Haynes said, then engaging with various community members to work together to help address that purpose. The growing number of use cases is encouraging, she said, as more local leaders embrace what the technology can do for them and see its benefits.
“When we're having this conversation about AI, when it first started, it felt very scary, it felt very futuristic, out of their league for a lot of local government officials,” Haynes said. “But now, by having their voice raised, they’re saying they’re not afraid of using the technology, they just need practical use cases that helps the bottom line, which is efficiency of government and efficiency of governance that will then connect to improving resident outcomes. Now you see local officials leaning in. They're not afraid of it.”




