The high cost of housing in urban centers such as NYC, SF, Boston, LA is caused by market inefficiencies caused by zoning density restrictions and overuse of hi

The high cost of housing in urban centers such as NYC, SF, Boston, LA is caused by market inefficiencies caused by zoning density restrictions and overuse of historic landmark status. This actions result in a "politically induced" scarcity which works against wealth creation. In microeconomics, this is called, "rent-seeking." Harvard Economist Edward Glaeser has written extensively about this, see NY Daily News: "Build Big Bill" for a solution to the high cost of housing in NYC. Financial Times columnist (and with a masters in Economics) Tim Harford has written about this. See his book, "The Undercover Economist." Economics Nobelist Paul Krugmann has mentioned this in his NYTimes columns as well. In the US, at least, the high cost of health care has impacted wage growth for many since firms generally pay employees according to overall salaries and benefits. As more and more money has gone to health care costs, less money has gone to salaries.