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 | Sep 21, 2020
No ease of lumber price spikes in sight
Wildfires strike Northwest timber industry in wake of Covid-19 shutdowns.
Codes and Standards | Sep 17, 2020
Spate of energy code appeals could hamper efficiency progress
Construction and fossil fuel interests oppose portions of latest model energy code.
Codes and Standards | Sep 16, 2020
Heat pumps are the future for hot water
Sustainability policies will drive trend.
Codes and Standards | Sep 15, 2020
Taller timber buildings approved in National Fire Protection Association code
Ensures compatibility with the International Building Code.
Codes and Standards | Sep 14, 2020
Relocation of neighborhoods, the next step in U.S. flood strategy, is underway
Repeated rebuilding after successive floods now seen as bad policy.
Codes and Standards | Sep 10, 2020
Fannie Mae programs provide incentives for multifamily solar
Affordable housing projects can find PV installations to be cost-effective.
Codes and Standards | Sep 9, 2020
Corporate pledges accelerate net-zero building movement
World Green Building Council drives goal of net-zero carbon emissions by 2050.
Codes and Standards | Sep 8, 2020
Study will examine elevator airflow amid COVID-19 pandemic
Researchers to investigate risk of airborne transmission.
Codes and Standards | Sep 4, 2020
Updated selection, application guide for plastic glazed skylights, sloped glazing released
Part of suite of skylight documents by Fenestration and Glazing Industry Alliance.
Codes and Standards | Sep 3, 2020
Turner Construction takes strong stand against racism
Shuts down work sites for anti-bias training.