Building Bridges or Barriers? : Exploring How Municipal Policy Requirements Shape the Feasibility of Housing Development Projects

Abstract: Abstract This thesis aims to explore the impact of municipal sustainability policy requirements on the feasibility - the viability or practicality of the realization - of housing development projects, by using the perspectives of the municipality, housing developers, and institutional investors. By using this three-point perspective, this thesis aims to shed light on the intricate dynamics between these stakeholders, and the implications of municipal policy requirements on the project feasibility. Therefore, the study seeks to uncover perceived challenges from the housing developers and identify potential areas for improvement in the policy implementation. The municipality of Eindhoven in the Netherlands is used as a case study. The study uses principal-agent theory and employs a qualitative analysis method, to gain new insights into the effectiveness of policy implementation, the interplay and collaboration between the different stakeholders, the collaboration, and investment strategies of institutional investors. The study concludes that collaboration between the housing developers and the municipality is a key factor in overcoming barriers and creating feasible housing development projects. Building trust, recognition for each other’s interests, and sharing risks and responsibilities are crucial elements. As well as stability in the policy implementation, which is identified as a key factor in safeguarding ongoing development projects from unexpected costs and delays. Aligning policy requirements with consumer needs, fostering trust and understanding between the stakeholders, and creating some sort of ‘transition policy’ are the key takeaways from this study. Ultimately, the study aims to contribute to effective policy implementation, improved collaboration, and accelerating the housing supply.