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It's complicated. The loose monetary policy is certainly one aspect. Another is that most American city-center residential areas are still zoned at low densitie
by Karrot_Kream 4y ago
It's complicated. The loose monetary policy is certainly one aspect. Another is that most American city-center residential areas are still zoned at low densities. If organic growth could lead to organic densification in central locations, there would be less impact to the housing market, but American zoning is stuck in the aftermath of WWII and is loathe to densify.
- cloudier 4y agoYep. One study^1 estimates that zoning and land use restrictions across the country leads to an (unnecessary) increase in housing costs worth 2% of the US GDP (about $400 billion). [1]: https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.32.1.3 https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.32.1.3