The Not-So-Libertarian Argument For Sprawl

In the 1990s, most public argument about suburban expansion was pretty simple. Environmentalists argued that sprawl increased pollution, while their opponents responded by invoking the free market.   Environmentalists and other sprawl critics (including myself) responded that sprawl is the result less of the free market than of government subsidy and regulation.  Recently I have started to notice hints of a not-so-libertarian argument for sprawl: that pro-sprawl government policies such as highway construction open up real estate for development, and thus make housing affordable. 

3 minute read

October 25, 2012, 9:18 AM PDT

By Michael Lewyn @mlewyn


In the 1990s, most public argument about suburban expansion was pretty simple. Environmentalists argued that sprawl increased pollution, while their opponents responded by invoking the free market.   Environmentalists and other sprawl critics (including myself) responded that sprawl is the result less of the free market than of government subsidy and regulation

Recently I have started to notice hints of a not-so-libertarian argument for sprawl: that pro-sprawl government policies such as highway construction open up real estate for development, and thus make housing affordable. 

Indeed, some car-oriented, "sprawling" cities are quite affordable.  On the other hand, others (such as San Diego) are quite expensive.  How come?

Given that housing policies are partially a function of the availability of land, government can make land available through (1) not overregulating land supply and (2) building infrastructure to make development tempting to landowners.  Governmental decisions as to where (and how much) to use these techniques determine both land prices and the extent of suburban growth.  

For example, a government or set of governments could choose a pro-sprawl infrastructure policy (such as that of Houston, which has two beltways) combined with a relatively lenient (even if by no means completely libertarian) land use policy.  This "cheap sprawl" policy will lead to a high land supply (and thus to low home prices) but lots of driving, thus leading to high transportation costs and greenhouse gas emissions.

A second option is "expensive sprawl": a pro-sprawl infrastructure policy combined with tight anti-density, anti-infill regulation in existing neighborhoods.  This policy will lead to higher housing prices than cheap sprawl, because much of the region's land supply would be constricted by regulation.  But commutes would be at least as long as in cheap sprawl, as people move to new subdivisions along new expressways in order to avoid the high housing prices in tightly regulated existing neighborhoods.  And because government regulation would restrict the density of infill development, even residents of existing neighborhoods might have to do a lot of driving. So from both an environmentalist standpoint and an affordable housing standpoint, "expensive sprawl" creates the worst of both worlds: higher prices than in cheap sprawl, plus mandatory driving.

Third, a region could combine an anti-sprawl infrastructure policy and tight regulation- "expensive smart growth."  Presumably, this policy would yield the lowest housing supply and thus the highest housing costs, though it might not be as environmentally toxic as my second option.

Finally, a region could limit new infrastructure to transit, but could deregulate infill development.  This policy was what most American cities followed until the 1920s, and would in some ways create truly smart growth: housing prices would not be out of control because housing supply would expand to meet population growth, yet because new development would frequently be in transit-friendly aresa, transportation costs would be low too and commuting would not be a significant contributor to pollution.

The possibility of my final option shows that in principle, a city or region could achieve more compact, transit- and pedestrian-friendly development without raising housing prices.  On the other hand, what makes sense in principle and what is politically easy are often two different things. 


Michael Lewyn

Michael Lewyn is a professor at Touro University, Jacob D. Fuchsberg Law Center, in Long Island. His scholarship can be found at http://works.bepress.com/lewyn.

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight