The real estate industry has an important role to play in promoting health, social equity, and justice given its direct impact on communities through housing and land use policies. In light of recent social justice movements drawing attention to systemic racism and other forms of oppression, the industry as a whole is facing a reckoning and calls for reform. Adopting sustainable and equitable real estate policies and practices can help address these issues while also benefiting the environment and economy.
The Need for Greater Equity and Inclusion
Decades of discriminatory housing policies and zoning restrictions have created a lack of affordable housing options and reinforced racial and economic segregation in many communities. This perpetuates inequality by limiting access to good schools, jobs, healthcare, and other opportunities for lower-income groups and people of color. The real estate industry, which shapes neighborhoods and cities through its investment decisions and developments, must step up to promote greater equity and inclusion.
Several organizations have outlined standards and proposals for increasing diversity and driving systematic change within the real estate sector:
- The Real Estate Diversity Initiative aims to attract underrepresented groups into commercial real estate careers through outreach programs, scholarships, and partnerships with universities.
- The Urban Land Institute's Center for Sustainability and Economic Performance has proposed policy reforms focused on affordable housing and equitable transit-oriented development.
- Several real estate companies have signed the CEO Action Pledge for Diversity and Inclusion, committing to cultivate workplace diversity and inclusion strategies.
How Sustainable Real Estate Promotes Equity
Sustainable real estate refers to the design, construction, and operation of property in an ecologically and socially conscious way. Beyond environmental benefits like energy efficiency, sustainable buildings and neighborhoods can also foster community health, inclusion, and upward mobility.
Mixed-Income Housing and Land Use
Equitable and diverse housing options are essential for social sustainability. Real estate developers can promote equity through:
- Mixed-income housing developments that integrate affordable and market-rate units, preventing economic segregation.
- Transit-oriented affordable housing projects that connect lower-income residents to jobs and amenities.
- Mixed-use zoning that allows housing near offices, retail, and parks so people can access opportunities and services.
Environmentally-Friendly Buildings
Sustainable construction creates living spaces and workplaces designed for comfort, health, and accessibility:
- Green buildings use natural light, ventilation, less toxic materials and are proven to support physical and mental well-being.
- Passive house standards dramatically increase energy efficiency, reducing utility expenses to ease cost of living burdens.
- Accessible design choices make buildings welcoming to differently abled groups.
Community Development Programs
Real estate projects can give back to marginalized groups through community investing programs:
- Developer fees and profits may fund new parks, schools, job training programs to uplift disadvantaged neighborhoods.
- Commercial spaces can be leased at below-market rates to minority-owned businesses or social enterprises addressing local needs.
- Underrepresented minority contractors can be engaged for construction jobs, bringing economic opportunities.
- Affordable housing lotteries prioritize veterans, disabled persons, and other underserved groups.
Policy Reforms for An Equitable Real Estate Sector
While individual companies can make a positive impact through their projects, industry-wide policy changes are needed to scale up adoption of equitable and sustainable practices.
Potential reforms include:
- Zoning laws updated to allow for more mixed-use and mixed-income developments.
- New funding mechanisms so developers can incorporate affordable units without sacrificing profits.
- Property tax incentives for sustainable building certifications like LEED to drive environmentally-conscious design.
- Mandates that landlords disclose energy and water efficiency scores to tenants to reward and spread adoption.
- Public land trusts and community land ownership models that give residents control over their neighborhoods.
With targeted regulations and incentives, governments can encourage real estate investment to be a force for health, inclusion, and justice rather than exacerbate existing social and economic disparities.
Looking Ahead With Hope
While the real estate industry has played a role in racial inequities and injustice historically, there are signs of positive change on the horizon. The practices outlined above provide a blueprint for developers, property managers, urban planners and policymakers aiming to build more sustainable, healthy, and inclusive communities.
Through mixed-income housing, affordable green buildings, community investing initiatives, and policy reforms, the real estate field can promote social justice and environmental sustainability together, dismantling legacies of segregation and inequality.
With vision and commitment, the places where people live, work and gather in communities across the country can fully reflect our shared values of diversity, empowerment, health, and possibility for all.
Frequently Asked Questions
What is sustainable real estate?
Sustainable real estate refers to the design, construction and operation of buildings and neighborhoods in an environmentally conscious way to conserve resources as well as promote health, inclusion and opportunity in communities.
How does sustainable real estate promote equity and inclusion?
Sustainable real estate promotes equity and inclusion through practices like mixed-income housing developments, transit-oriented affordable housing, passive house standards that reduce utility costs, accessible building design, community development programs, and engaging minority-owned businesses.
Why does the real estate industry need reform to promote equity?
Industry-wide policy changes through updated zoning laws, new funding mechanisms, sustainability incentives, mandates, and community land trusts are needed to drive large-scale adoption of equitable and sustainable real estate development practices.
What are some examples of sustainable real estate features?
Some examples include energy efficient heating and cooling systems, smart water management, renewable energy like solar panels, non-toxic construction materials, walkable neighborhoods with access to parks and amenities, and integration of affordable housing units.
How can I as a consumer support equitable and sustainable real estate?
Consumers can support sustainable real estate by choosing to work with developers committed to mixed-income housing, green building certifications, community benefits programs, and diversity, as well as advocating for policy reforms around inclusive zoning and incentives.
