flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Study: Urban land use policies costs U.S. economy $1.6 trillion a year

Multifamily Housing

Study: Urban land use policies costs U.S. economy $1.6 trillion a year

The research contends that more affordable housing options can help cities generate significantly more income.


By BD+C Staff | May 19, 2015
Study: Urban land use policies costs U.S. economy around $1.6 trillion a year

San Francisco creates great wealth in the technology sector, but most of those gains go to pay for higher housing costs. Photo courtesy King of Hearts/Wikimedia Commons

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.”

CityLab has the full report.

Related Stories

Multifamily Housing | Apr 23, 2020

Tankless water heaters: 12 things to know about these energy savers for multifamily housing

Twelve factors to consider in using tankless water heaters in multifamily housing.

Multifamily Housing | Apr 20, 2020

Multifamily market flattens as construction proposal activity sinks

Multifamily has consistently been one of the strongest performers among 58 submarkets measured in PSMJ Resources’ quarterly survey.

Coronavirus | Apr 15, 2020

COVID-19 alert: 93% of renters in professionally managed multifamily housing paid some or all of their rent, says NMHC

In its second survey of 11.5 million units of professionally managed apartment units across the country, the National Multifamily Housing Council (NMHC) found that 84% of apartment households made a full or partial rent payment by April 12, up 15 percentage points from April 5.

Multifamily Housing | Apr 15, 2020

Related Group picks Stantec to design and engineer Manor Miramar residences in Florida

Related Group picks Stantec to design and engineer Manor Miramar residences in Florida.

Coronavirus | Apr 5, 2020

COVID-19: Most multifamily contractors experiencing delays in projects due to coronavirus pandemic

The NMHC Construction Survey is intended to gauge the magnitude of the disruption caused by the COVID-19 outbreak on multifamily construction.

Plumbing | Mar 13, 2020

Pioneer Industries launches new website

Pioneer Industries launches new website

Multifamily Housing | Mar 5, 2020

The Aviator apartment community opens near Henderson Executive Airport

The community is inspired by antique airplane designs.

Building Materials | Mar 3, 2020

84 Lumber President Maggie Hardy Knox receives Career Achievement Award

Maggie Hardy Knox, President of 84 Lumber and Nemacolin Woodlands Resort, to receive Career Achievement Award.

boombox1
boombox2
native1

More In Category


Great Solutions

41 Great Solutions for architects, engineers, and contractors

AI ChatBots, ambient computing, floating MRIs, low-carbon cement, sunshine on demand, next-generation top-down construction. These and 35 other innovations make up our 2024 Great Solutions Report, which highlights fresh ideas and innovations from leading architecture, engineering, and construction firms.



halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021