5 ms·

Zoning laws are responsible for higher prices: https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-03.pdf https://www.rba.gov.au/publications/rdp/2018/pdf

Zoning laws are responsible for higher prices: https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-03.pdf https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-03.... The mechanism is clear cut. Restrict supply, price goes up. There's quite a bit of empirical support as well. I don't doubt what you've observed but I think it needs to be addressed rigorously.

colechristensen 5y ago
All i’ve seen so far is people explaining their preferred reasons for why things happen and their guesses for what new policy will do. What I haven’t seen is a case study or anecdote of something actually resulting in lower prices. (besides tech busts and covid in SF)
- fighterpilot 5y ago
  There's lots of evidence and many studies that show that zoning causes high real estate prices. I don't think it's fair to say it's merely a preferred reason. Here's one of many: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3507803 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3507803 The bar that you're asking for is too high. Relaxing zoning laws in a specific locale shouldn't lead to lower prices necessarily. It should lead to a smaller price increase than what would have otherwise occurred due to supply still being restricted elsewhere and the relative fungibility of low to mid income housing. But I agree that it would be good to see an event study of a natural experiment in addition to the correlational studies. However given the existing evidence we have, as well as the underlying economic logic, we shouldn't pretend as though there's no basis for bringing up zoning as a major cause of high real estate prices.
- imtringued 5y ago
  I am seeing you completely ignore the real world for your own preferred reason why things happen and your guess for what new policy will do. I am seriously disappointed that you wrote such an awful comment.

colechristensen 5y ago

All i’ve seen so far is people explaining their preferred reasons for why things happen and their guesses for what new policy will do. What I haven’t seen is a case study or anecdote of something actually resulting in lower prices. (besides tech busts and covid in SF)

fighterpilot 5y ago
There's lots of evidence and many studies that show that zoning causes high real estate prices. I don't think it's fair to say it's merely a preferred reason. Here's one of many: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3507803 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3507803 The bar that you're asking for is too high. Relaxing zoning laws in a specific locale shouldn't lead to lower prices necessarily. It should lead to a smaller price increase than what would have otherwise occurred due to supply still being restricted elsewhere and the relative fungibility of low to mid income housing. But I agree that it would be good to see an event study of a natural experiment in addition to the correlational studies. However given the existing evidence we have, as well as the underlying economic logic, we shouldn't pretend as though there's no basis for bringing up zoning as a major cause of high real estate prices.
imtringued 5y ago
I am seeing you completely ignore the real world for your own preferred reason why things happen and your guess for what new policy will do. I am seriously disappointed that you wrote such an awful comment.