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 | May 17, 2021
Latest Manual on Uniform Traffic Control Devices criticized for not considering bikes, pedestrians
More than a dozen advocacy groups want feds to start over.
Codes and Standards | May 13, 2021
LEED-certified federal buildings don’t use less energy than average
May be due to trade-offs on how score is developed.
Codes and Standards | May 12, 2021
White paper examines how to reduce pathogen transmission in ventilation
Pressure barriers and airflow distribution can be effective in existing buildings.
Codes and Standards | May 11, 2021
Pressure builds on White House to rein in cost of lumber
Spike in prices has added nearly $36,000 to price of average new home.
Codes and Standards | May 11, 2021
Residential codes should be upgraded to protect from cooking pollutants
Report examines ventilation standards, calls for increased public awareness of issue.
Codes and Standards | May 6, 2021
Blue roofs can provide relief to overwhelmed stormwater systems
Benefits most evident in industrial commercial areas.
Codes and Standards | May 5, 2021
Majority of schools took steps to improve air quality during pandemic
Districts still have unmet needs, face high costs and outdated building infrastructure.
Codes and Standards | May 4, 2021
Cost to keep Miami dry over next few decades is $4 billion
Rising seas demand big investment.
Codes and Standards | May 3, 2021
Fire stops critical to preserving three-decker housing
Old multi-family structures continue to provide badly needed homes in urban zones.
Codes and Standards | Apr 29, 2021
Dept. of Energy publishes energy savings analysis for ANSI/ASHRAE/IES Standard 90.1-2019
More than 4% savings for commercial buildings found for the updated code.