Cities like New York and San Francisco give massive contributions to the nation’s overall economy, with 380 U.S. metro areas generating 90% of the total GDP in 2012.
But a new study found that these cities can actually be making much more—a hefty $1.6 trillion more, to be exact. So why isn’t this money being generated? The answer is the lack of affordable housing inventory in urban areas.
Economists Chang-Tai Hsieh from the University of Chicago and Enrico Moretti of the University of California at Berkeley have placed a price tag on restrictive urban land use policies, The Atlantic’s CityLab reports.
According to CityLab, Hsieh and Moretti’s research is the first of its kind to develop a “defensible estimate” of the costs constrained development, such as antiquated zoning and building codes, have on the U.S. economy.
The $1.6 trillion figure was extrapolated from an analysis on the economic contribution of 220 metros to the overall U.S. economic growth over more than five decades, supplemented with data on the characteristics of workers from the American Community Survey and the Current Population Survey.
What they found was that “too much of America’s urban economic power is simply being wasted on higher housing bills.”
Related Stories
| Aug 16, 2022
Multifamily holds strong – for now
All leading indicators show that the multifamily sector is shrugging off rising interest rates, inflationary pressures and other economic challenges, and will continue to be a torrid market for design and construction firms for at least the rest of 2022.
| Aug 10, 2022
U.S. needs more than four million new apartments by 2035
Roughly 4.3 million new apartments will be necessary by 2035 to meet rising demand, according to research from the National Multifamily Housing Council (NMHC) and National Apartment Association.
Multifamily Housing | Aug 4, 2022
Faculty housing: A powerful recruitment tool for universities
Recruitment is a growing issue for employers located in areas with a diminishing inventory of affordable housing.
Multifamily Housing | Aug 3, 2022
7 tips for designing fitness studios in multifamily housing developments
Cortland’s Karl Smith, aka “Dr Fitness,” offers advice on how to design and operate new and renovated gyms in apartment communities.
Multifamily Housing | Aug 3, 2022
NEW DEADLINE for Senior Living and Student Housing projects for "MULTIFAMILY Design+Construction" Fall issue
Fall 2022 issue of MULTIFAMILY Design+Construction will have reports on Senior Living and Student Housing.
Multifamily Housing | Jul 28, 2022
GM working to make EV charging accessible to multifamily residents
General Motors, envisioning a future where electric vehicles will be commonplace, is working to boost charging infrastructure for those who live in multifamily residences.
Multifamily Housing | Jul 26, 2022
All-electric buildings – great! But where's all that energy going to be stored?
There's a call for all-electric buildings, but can we generate and store enough electricity to meet that need?
Green | Jul 26, 2022
Climate tech startup BlocPower looks to electrify, decarbonize the nation's buildings
The New York-based climate technology company electrifies and decarbonizes buildings—more than 1,200 of them so far.
Sponsored | Multifamily Housing | Jul 19, 2022
Engineering Solutions for a More Inclusive Community
Affordable housing complex uses engineered wood to keep construction costs low, tackle a public predicament and give rise to a stronger, more inclusive community.
Multifamily Housing | Jul 14, 2022
Multifamily rents rise again in June, Yardi Matrix reports
Average U.S. multifamily rents rose another $19 in June to edge over $1,700 for the first time ever, according to the latest Yardi® Matrix Multifamily Report.
