The New Corn Laws: Why Housing Costs Are So High
“In an analysis of California cities, the environmental economist Matthew Kahn found that among the strongest predictors of minimal housing growth was the combined share of the vote going to Democrats and minor parties to their left. Even aside from zoning, neighbors can use environmental-impact review, historical-preservation laws, and other regulations to tie up new construction in the courts, thereby raising its costs. Zoning, however, is the starting point, and in many cities only single-family homes are allowed. One of the surprising things about Silicon Valley is that it looks like the sprawling outer suburb it was in the mid 20th century, not the center of a booming economy that it is today, with headquarters of Apple, Google, and Facebook.”