Report Says Growth Management Plans Make Housing Unaffordable

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.

1 minute read

December 10, 2007, 6:00 AM PST

By Nate Berg


"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."

Friday, December 7, 2007 in Cato Institute

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.

June 18, 2025 - Diana Ionescu

Two people walking away from camera through pedestrian plaza in street in Richmond, Virginia with purple and white city bus moving in background.

Vehicle-related Deaths Drop 29% in Richmond, VA

The seventh year of the city's Vision Zero strategy also cut the number of people killed in alcohol-related crashes by half.

June 17, 2025 - WRIC

Two small wooden one-story homes in Florida with floodwaters at their doors.

As Trump Phases Out FEMA, Is It Time to Flee the Floodplains?

With less federal funding available for disaster relief efforts, the need to relocate at-risk communities is more urgent than ever.

June 16, 2025 - Governing

Large white banner with red letter reading "Space Available - Apts. for Rent - Call 898-0660" on brick building in Washington, D.C.

US Rents Squeezing Low-Income Tenants

Despite a recent — and slowing — apartment construction boom, renters at the lower end of the income scale are still struggling to find housing.

1 hour ago - Bloomberg CityLab

Person holding sign reading 'Rent Relief Now!' wearing blue face mask.

Tech Tools Help Tenants Push Back Against Problematic Landlords

Shelterforce found more than a dozen examples of tenant-serving technology that help renters identify landlords, respond to eviction, fight back against housing discrimination, and more.

2 hours ago - Shelterforce Magazine

Wood-frame multifamily housing units under construction on a street in low-density area or suburb.

More Apartments Are Being Built in Less-Dense Areas

Rising housing costs in urban cores and a demand for rental housing is driving more multifamily development to exurbs and small metros.

June 24 - Smart Cities Dive