In this new report from the Cato Institute, Randal O'Toole writes that regional growth management plans make housing unaffordable and that states with these laws should repeal them.
"Growth-management tools such as urban-growth boundaries, adequate-public-facilities ordinances, and growth limits all drive up the cost of housing by artificially restricting the amount of land available or the number of permits granted for home construction. On average, homebuyers in 2006 had to pay $130,000 more for every home sold in states with mandatory growth-management planning than they would have had to pay if home price-to-income ratios were less than 3. This is, in effect, a planning tax that increases the costs of retail, commercial, and industrial developments as well as housing."
"The key to keeping housing affordable is the presence of large amounts of relatively unregulated vacant land that can be developed for housing and other purposes. The availability of such low-cost land encourages cities to keep housing affordable within their boundaries."
FULL STORY: The Planning Tax: The Case against Regional Growth-Management Planning
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