Wendell Cox believes so. In this article, he quantifies the effect of land use regulation on the cost of new home construction, which he says leads to
Looking at regulations in 11 metropolitan areas across the country, Cox found that smart growth guidelines account for more than 20% of new home costs, adding anywhere from $30,000 (Minneapolis-St. Paul) to $220,000 (San Diego). Furthermore, areas with the most restrictions are seeing faster increases to new home prices than those with more lenient regulations.
The result, Cox claims, is increased costs to developers and mortgage lenders and generally less affordable housing:
"More restrictive land use land use regulation also creates obstacles to people buying houses, requiring them to devote more money to housing than necessary and increases their vulnerability to losses in the event of a financial downturn."
Read the full story: New Index Estimates New House Cost Impact of Land Regulation
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