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

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

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

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.

May 14, 2025 - Diana Ionescu

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Aerial view of Albuquerque, New Mexico at sunset.

New State Study Suggests Homelessness Far Undercounted in New Mexico

An analysis of hospital visit records provided a more accurate count than the annual point-in-time count used by most agencies.

6 hours ago - Source NM

Close-up on white bike helmet lying on pavement with blurred red bike on its side in background abd black car visible behind it.

Michigan Bills Would Stiffen Penalties for Deadly Crashes

Proposed state legislation would close a ‘legal gap’ that lets drivers who kill get away with few repercussions.

7 hours ago - Wood TV 8

Muni bus on red painted bus-only lane in downtown San Francisco, California.

Report: Bus Ridership Back to 86 Percent of Pre-Covid Levels

Transit ridership around the country was up by 85 percent in all modes in 2024.

May 16 - Mass Transit