The Housing Crunch Is Our Fault. We Can Fix It.

By Randal O’Toole : cato – excerpt (includes graphs)
(This article appeared in Washington Post on October 13, 2016.)

The only real solution is to repeal the state laws and local plans that created the problem in the first place.

Housing prices are rapidly rising in many urban areas. Prices in the San Francisco Bay Area are higher today — even after adjusting for inflation — than they were at the height of the 2006 bubble. Data from the Federal Housing Finance Agency bears this out:..

Yet this is not a nationwide problem. Prices in many other areas remain quite reasonable. Houston and Dallas/Fort Worth are the nation’s fastest-growing urban areas, yet they remain affordable (which is one reason they are growing so fast). Here are home prices for areas that don’t try to control urban sprawl (again, the data comes from the Federal Housing Finance Agency):…

The difference is that the urban areas with high housing prices have almost all tried to contain urban “sprawl” by limiting the amount of land around the cities that can be developed, using policies such as urban-growth boundaries, urban-service boundaries or concurrency requirements that limit new growth until infrastructure is totally financed. Anyone who understands supply and demand knows that limiting supply in the face of rising demand leads to higher prices…

The only real solution is to repeal the state laws and local plans that created the problem in the first place. That means abolishing growth boundaries and other constraints and allowing developers to build and sell homes outside of existing urban areas.

There is a growing opposition to the dense development theme. SF has ballot initiatives and LA is preparing a moratorium initiative. People do not like living in crowded conditions and do not like being told how to live.
If the Democrats do not take back the Senate maybe they will start to listen to what the citizens are saying instead of telling us how we must change. It is time for Congress to change.

 

 

 

 

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