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

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Walmart Announces Nationwide EV Charging Network
The company plans to install electric car chargers at most of its stores by 2030.

San Diego Adopts First Mobility Master Plan
The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

Lakewood Celebrates Arbor Day and Strengthens Urban Forestry Legacy
Lakewood celebrated Arbor Day and its 43rd year as a Tree City USA community with a youth-led tree planting event at O’Kane Park, reinforcing its long-standing commitment to urban forestry and environmental education.

NYC Congestion Pricing Continues to Show Positive Results
While the Trump administration attempts to revoke the program’s federal approval, congestion pricing continues to reduce traffic, speed up bus travel times, and improve air quality in Manhattan.

Grassroots Dutch Movement Replaces Pavement With Green Space
Neighbors engage in a practice known as “tegelwippen,” picking up paving stones and replacing them with permeable surfaces, often with the support of local governments.
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.
City of Moorpark
City of Tustin
Tyler Technologies
City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
Regional Transportation Commission of Southern Nevada
Toledo-Lucas County Plan Commissions