Economists see America's recovering housing market as a positive indication of the country's economic health. But according to a new study, rising home prices "decrease income mobility and ultimately hurt the U.S. economy," reports Nicole Goodkind.
The study, authored by Daniel Shoag, associate professor of Public Policy at Harvard's Kennedy School, and colleague Peter Gangong, concludes that the high cost of housing in cities like New York and San Francisco are forcing low-skilled workers to migrate to cities like Las Vegas and Phoenix, increasing income inequality and slowing economic growth.
What is to blame for the stagnant rate of income convergence? "An increase in land regulation in high-wage
states and cities discourage development that would lower housing
prices," says Shoag.
"It's
surprising that local regulations can have such a big macroeconomic
impact...that they can affect this process of income migration and
conversion, which are long-standing macroeconomic relationships," he
notes.
"Policies,
however, can be reversed: Shoag has already been contacted by lawmakers
in Washington in hopes of figuring out how to encourage new, affordable
developments in high-wage places," adds Goodkind.
FULL STORY: Home Prices Push Low-Wage Workers Out of Cities
Opinion: How to Rebuild the ‘Starter Home’ Market
Large minimum lot sizes and restrictions on multi-unit housing put an artificial floor under home costs. Is it time to eliminate them?
Home Prices Continue to Rise Across the Nation
The pandemic’s effects continue to impact housing markets, with formerly affordable cities seeing a steep rise in housing costs.
Austin Lot Size Changes Could Make Homes More Affordable
Land acquisition makes up 15 to 20 percent of the cost of an average home in the Austin area.
Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?
King County Supportive Housing Program Offers Hope for Unhoused Residents
The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.
Researchers Use AI to Get Clearer Picture of US Housing
Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.
Making Shared Micromobility More Inclusive
Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
planning NEXT
Appalachian Highlands Housing Partners
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie