Despite its poor track record, homeownership is the bad investment idea that never seems to die. Even though the financial crisis revealed the risks that homeowners take on by making highly leveraged purchases, policymakers are still developing new programs to encourage home buying. Both the Clinton … [Read more...]
Home-Sharing and Housing Supply
One common argument against Airbnb and other home-sharing companies is that they reduce housing supply by taking housing units off the long-term market.* As I have written elsewhere, I don't think home-sharing affects housing supply enough to matter. But even leaving aside the empirical question of … [Read more...]
The “Global Buyers” Argument
One common argument against building new market-rate housing is that there is an infinite supply of rich foreigners willing to soak up new supply. One obvious flaw in this argument is that housing prices do occasionally go down even in expensive places.But even leaving aside this reality, the … [Read more...]
Supply and Demand: A Response to 48hills
In a recent piece published by 48hills, former Berkeley planning commissioner Zelda Bronstein takes aim at...well...too many things for me to succinctly recount in detail. So instead of attempting to respond to every single argument littered throughout her 7,000 word article, I’ll focus on the big … [Read more...]
Episode 02: Emily Hamilton on Land-Use Regulation and the Cost of Housing
When I was scheduling out the first few episodes of the Market Urbanism Podcast, it seemed natural to start with one of Market Urbanism's favorite topics: the relationship between land-use regulation and rising housing costs in American cities. This week I sit down with Emily Hamilton, a regular … [Read more...]
Shut Out: How Land-Use Regulations Hurt the Poor
People sometimes support regulations, often with the best of intentions, but these wind up creating outcomes they don’t like. Land-use regulations are a prime example.My colleague Emily Washington and I are reviewing the literature on how land-use regulations disproportionately raise the cost of … [Read more...]
Can Housing Quotas Affect Demand For Housing?
Economist Nick Rowe at Worthwhile Canadian Initiative has a provocative piece asking whether housing demand curves might actually slope up. He puts his argument in abstract mathematical terms (again, he’s an economist), but the germ of the idea is that “everybody wants to live near everyone else, … [Read more...]
The Answer to Expensive Housing: Build More
If you restrict the supply of housing, other things equal, what will happen to the price? That’s not a trick question. Any competent Econ 101 student would answer correctly that the price will rise.One reporter for the Washington Post gets it. In a hopeful sign of spreading economic literacy, … [Read more...]