Zoning restrictions are making the construction of housing more difficult, and that is driving up the cost of housing in many cities.
What’s more, that effect is having an impact beyond the construction industry, according to a study by two economists, Chang-Tai Hsieh of the University of Chicago and Enrico Moretti of the University of California at Berkeley. They estimate that zoning restrictions reduced U.S. GDP as a whole by 9% percent a year, or roughly $1.5 trillion a year.
Some urbanists and city planners view the key to rebuilding cities, reigniting innovation, and improving productivity is to do away with onerous zoning codes and land-use restrictions that stymie much-needed development. This is particularly true when it comes to housing in certain technology and economic hubs such as like New York and San Francisco.
The two economists recently published an update to their study, and found that such zoning constraints lowered the aggregate growth by more than half between 1964 and 2009. The study advocates for investing in mass transit, light rail, subways and high-speed rail to connect places together. Such investments in transit are likely to have a much bigger positive economic impact than eliminating land use restrictions by linking job centers to outlying places, where land is relatively cheap and housing more affordable, the economists argue.
Related Stories
Codes and Standards | Feb 14, 2019
ISO publishes first global BIM standards
Based on British standard and a publicly available standard.
Codes and Standards | Feb 12, 2019
Property technology adoption accelerates in commercial real estate industry
New business models create disintermediation.
Codes and Standards | Feb 11, 2019
Investing in downtowns pays off for cities, regions
Benefits include driving tax revenue, business activity, and smart development.
Codes and Standards | Feb 8, 2019
Oslo, Norway’s downtown goes virtually car-free
Parking spots converted to bike lanes, transit is fast and easy.
Codes and Standards | Feb 7, 2019
New North Carolina energy code has extensive lighting control requirements
Includes automatic shut offs for buildings of all sizes.
Codes and Standards | Feb 6, 2019
Solar carports can help with California’s Title 24 mandates
Can be combined with virtual net-metering software and tax-enabled financing.
Codes and Standards | Feb 5, 2019
Milwaukee board approves rezoning for Western Hemisphere’s tallest mass timber building
Mixed-use tower would rise 21 stories high.
Codes and Standards | Feb 1, 2019
Mass. governor proposes real estate transfer fee hike for climate resiliency projects
Opposed by real estate and trade groups, plan could generate $1 billion in next decade.
Codes and Standards | Jan 31, 2019
New York City will reform construction bid process
Streamlined process intended to improve efficiency, reduce hassle for bidders.
Codes and Standards | Jan 30, 2019
New AGC program aims to diversify construction workforce
More diversity needed to keep pace with demand for workers.