Asset-Based Sustainable Community Development and Design
Wardian, London UK. Image courtesy of Wardian London.
Todayโs consumers expect real estate and hospitality businesses to assess their social and environmental impact more than ever before. This mindset shift is bringing attention to an approach that could revolutionize how our industry functions far into the future: asset-based sustainable community development.
Asset-based community development (ABCD) allows communities to utilize and build upon existing assets to solve problems and secure a more sustainable future. Better community development benefits members on both collective and individual levels, from longer lives due to multigenerational living to the potential for reduced crime rates, better jobs and higher standards of living.
Letโs look at the key components of an asset-based approach to community development and sustainability and look closely at some specific and exciting examples of how real estate companies are implementing this approach worldwide.
What is Asset-Based Sustainable Community Development?
Asset-based sustainable community development is a process through which communities leverage untapped assets to drive a more sustainable form of development. By engaging local stakeholders around the assets readily available to them, communities can build towards a future with more social support, economic opportunity, and eco-friendly infrastructure. Here are the core elements of this approach to community design.
Community Engagement
The ABCD approach to developing sustainable communities relies on the involvement of local stakeholders. Buy-in from the community is a foundational element, as individual members are the best candidates for identifying available assets and using them to realize necessary change through collective action. In simple terms, it encourages residents to think about their local and built environment and its use cases, creating discussion about how to most efficiently use the resources available to them.
An Asset-Based Approach
An asset-based approach to community living involves taking inventory of existing resources and deciding how to utilize them best. On a small scale, a simple example could be the transformation of unused land into a community garden for a whole neighborhood to enjoy.
Sustainability
With the ABCD approach, community development and sustainability go hand-in-hand. Sustainable community development programs prioritize the long-term health and wellbeing of a community. This means making decisions that will benefit residents now and for future generations to come.
Four Companies Leading Asset-Backed Community Development and Design
Circle Wood concept by Przemek Olczyk. Image courtesy of Mobius.
With the core elements of asset-based community development in mind, letโs examine a few real estate companies that are leading the field by integrating this approach into their projects today.
Venn
Venn is a unique social platform and experience-based company focusing on asset-backed community development at the neighborhood level. They pair technology with physical spaces to create better local experiences, more economic prosperity, and a truer sense of belonging for residents.
Theyโve proven that thriving neighborhoods help businesses grow, as Venn neighbors have reported a 240 per cent increase in local spending. The companyโs efforts help people curb loneliness, a growing health threat for individuals of all ages, by facilitating community-driven neighborhood development.
Vennโs approach to community development also pushes back against corporate commercialization, allowing locals to preserve and develop their own vibrant culture and unique sense of identity.
The company publishes an annual Impact Report to demonstrate the impact of community development with their ABCD approach on the neighborhoods they serve and individual neighbors that live there. Their 2021 report revealed that residents feel more connected the more time they spend living in a Venn neighborhood.
Arrived
Arrived Homes is a Seattle-based startup bringing an inclusive and community-focused approach to what has traditionally been an activity reserved for the wealthy. Theyโre putting a crowdfunding spin on real estate investment, making it more accessible with shares available for as low as $100.
This model offers the average person a chance to invest in real estate assets and benefit from asset valuation increases. This offers significant financial benefits to individuals, allowing them to build wider investment portfolios while fostering economic participation on a community level.
Nico
Nico offers community real estate investment trusts (REITs) that allow people to build wealth by purchasing assets within their own communities. Through this platform, neighbors become shareholders. They get a stake in their communityโs development, and a chance to generate income by investing in the place they call home.
People can participate with Nico from as low as $100, either as a one-time investment or through recurring monthly investments. Investing gives community members a share in the income generated by the real estate in their neighborhood REIT as well as its underlying value. Additionally, these neighborhood investors can either receive quarterly dividends or choose to reinvest earnings back into their REIT.
Nico also has B Corp certification, demonstrating the companyโs commitment to social and environmental responsibility. Itโs a purpose-driven business supporting everyday investors while helping neighborhoods progress in terms of housing and community development.
Effekt
Danish architecture firm Effekt develops sustainable living communities with an emphasis on creating a more eco-friendly reality now and for future generations. They blend architectural design into the natural surroundings to promote healthier, more socially interconnected living and more accessible housing and community.
A prime example of Effectโs approach to community sustainable living is their innovative residential development Naturbyen. This project in the Municipality of Middelfart, Denmark, was devised to demonstrate how sustainable housing can support biodiversity, afforestation, and circular resource thinking.
With Naturbyen, Effekt plans to transform an agricultural field into what they call a forest-neighborhood district. The district will contain a group of small communities that share resources and tend to the natural environment. The project also aims to provide a roadmap for Denmark as it works towards an increase from11 per cent to around 25 per cent of forested landmass by the end of the 21st century.
What Are the Benefits of Asset-Based Sustainable Community Development and Design?
The ABCD approach takes a holistic view of development. It applies community action to achieve an ecosystem that benefits individuals and their surrounding environment. This concept yields demonstrable benefits, like the life expectancy increase Norterre has seen for seniors in their multigenerational communities.
Here are a few examples of the positive impact of community development following the ABCD approach.
Improved quality of life among community members
Better response to community social justice issues
Fortified small businesses through job retention and resource access
Leveraging existing assets for community and economic development
Minimising the separation between community members
Improved economic development, talent pool, and available jobs
Infrastructure built for protecting the environment and improving sustainability
We Can Help You From Concept Through To Development Delivery
As you can see, asset-based sustainable community development and design consider how available, untapped resources can respond to the needs of a community and its environment. This approach is paving the way for development that is more holistic, participatory, and aligned to serve future generations.
Proven Partners has spent years helping hotel and real estate developers create innovative community living opportunities. If you are interested in exploring ways to implement asset-based community development, we encourage you to explore our development services today.
For more information on real estate sustainability, check out our deep-dive blog.
