Are Zoning Laws Causing Real Estate Bubble?
1 August 2005 - 8:00am
Maybe zoning laws are causing the real-estate bubble.
"Housing prices have to make sense on both the demand side and the supply side...
The great mystery is on the supply side. Instead of the traditional formula "housing price equals land price + construction costs + reasonable profit," we seem to be seeing something more like "housing price equals land price + constructions costs plus reasonable profit + mystery component." And, most interestingly, the mystery component varies a lot from city to city."
Full Story:
Is Housing Too Expensive? Blame the Government
Source:
Slate, July 29, 2005
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These practices are also inequitable since they force non-drivers to subsidize parking costs, reduce travel options for non-drivers, and reduce housing affordability.
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