The Politics of Sky-High House Prices

In Reason magazine's Joel Miller examines the ways the government causes increases in the price of owning a home. He finds that permit delays "of six months can add nearly $7 per square foot to the price of a house.

1 minute read

July 10, 2006, 2:00 PM PDT

By Chris Steins @planetizen


"Examining 45 metropolitan areas around the country, Glaeser and Gyourko studied the time it takes builders to apply for and receive a permit for a 'modest-sized, single-family subdivision of less than fifty units.' They found that in the areas where zoning is strict and approvals are slow, the price goes up considerably. Permit lags of six months can add nearly $7 per square foot to the price of a house.

That's more than $10,000 added to the cost of a 1,500-square-foot home. Double that for a 12-month lag." Or how about environmental policies? One California developer had to pay mitigation fees of $3.8 million because there were 40 garter snakes on the land -- that's $93,950 per snake and a cost that gets passed along to homebuyers.

"Today's trendy regulations are affordable housing mandates. But as Miller reports, a Reason Foundation study found the Bay Area's attempts to provide affordable housing by requiring developers to sell a percentage of new homes at prices below market value have backfired, triggering significant decreases in new home construction and increasing the price of new homes by $22,000 to $44,000."

Monday, July 10, 2006 in Reason Magazine

Young Professional

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 and Environmental 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 and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

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

September 16, 2026 - Zachary Whalen

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

A coal power plant in Iowa billows smoke into the air.

Nation's most wind-powered state turns to coal as data centers increase energy demand

For the first time in decades, Iowa has increased its generation of coal power.

6 hours ago - Inside Climate News

A sign on a fence describing the rain garden behind it.

NYC cools commuters with city's first rain garden above a bus stop

New York City officials say the plants in the rain garden can absorb 16 gallons of rainwater during heavy storms.

7 hours ago - Gothamist

A map showing Brightline West's intended route from  Las Vegas to Rancho Cucamonga, California.

Brightline West’s future may rely on $6 billion federal loan

The company has until Nov. 2 to make a $400 million equity investment into its proposed high-speed rail line.

September 17 - Smart Cities Dive

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.