Sprawl and the Free Market

This piece from The Freeman looks at the debate over sprawl and whether free market economics encourage it or offer a solution.

1 minute read

August 18, 2010, 12:00 PM PDT

By Nate Berg


"The exchanges focus mainly on zoning rather than other interventions that have been identified over the years as factors that abet sprawl. These include federal subsidies to construct the 46,876-mile-long interstate highway system and intra-urban freeway systems, both of which have made living in the less-expensive fringes of cities cheaper for urban commuters - not to mention federal subsidies for the construction of water mains, sewers, telecommunication lines, and, as we all should be well aware of today, direct and indirect subsidies to single-family home ownership via Fannie Mae, Freddie Mac, and a slew of federal policies intended to promote single-family home ownership, dating back to the Great Depression, including the income-tax deduction for mortgage interest."

The article suggests briefly that the demand curve for sprawl goes down over time, though that assertion is not fully explained.

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