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
School Construction | May 3, 2016
Florida clamps down on school construction spending
Critics fear rules will hamper ability to build schools with desired features.
Resiliency | May 2, 2016
Connecticut to develop new code standards for resiliency
Expected more frequent severe weather events due to climate change prompts review.
Contractors | Apr 29, 2016
OSHA issues advisory to protect workers from Zika virus
Construction industry workers considered at high risk.
Codes and Standards | Apr 28, 2016
New research finds 30 measures to significantly cut energy use
ASHRAE’s prescription cuts across all building types and climates.
Codes and Standards | Apr 27, 2016
Florida gives developers more time to install first responder radio signal systems
Expensive upgrades can be postponed for several years.
Codes and Standards | Apr 25, 2016
San Francisco becomes first big U.S. city to require solar panels on new buildings
Pertains to commercial and residential buildings shorter than 10 stories.
Codes and Standards | Apr 25, 2016
GSA adopts SITES land development and management rating system
Federal agency will use for properties with and without buildings.
Wood | Apr 22, 2016
Revised 2015 Manual for Engineered Wood Construction available
American Wood Council Document offers design information for structural applications.
Codes and Standards | Apr 20, 2016
OSHA updates eye and face protection standards in final rule
Becomes effective April 26.
Codes and Standards | Apr 18, 2016
Efficiency finance pilot project to spur retrofits on existing buildings
EDF and PG&E team up on interest-free loans for qualified projects.