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At least in some places, the root cause of high housing prices is their proximity to work. In those cases, why not address the root cause? Example: If you want
by chrisbennet 9y ago
At least in some places, the root cause of high housing prices is their proximity to work. In those cases, why not address the root cause?
Example: If you wanted to start a business that would consume more city resources than city infrastructure could support, say sewage/water/parking/etc, the city would deny a permit
to build.
Why not restrict the number/size of businesses in a location based on how many people/workers could reasonably afford to live there?
- averagewall 9y agoSolutions are the easy part. Getting people to agree with it when it hurts their financial interests is the hard part. The same NIMBYs that are keeping prices high in those areas with strict zoning rules would also never allow any such changes that will reduce prices. They depend on too many jobs and not enough houses.
- chrisbennet 9y agoRestricting further businesses wouldn't decrease their property values so it might be a lot more palatable.
- Robotbeat 9y agoBecause this would make the business less competitive and thus reduce both jobs and growth. Density tends to increase economic productivity and spur growth. Being close to other businesses, services, and population essentially reduces latency. "Using data on gross state output, the authors find that a doubling of employment density increases average labor productivity by around 6 percent. More than half of the variance of output per worker across states can be explained by differences in the density of economic activity." https://ideas.repec.org/a/aea/aecrev/v86y1996i1p54-70.html https://ideas.repec.org/a/aea/aecrev/v86y1996i1p54-70.html