Discussion about this post

User's avatar
Nominal News's avatar

Interesting read on your experiences in the political sphere of this discussion.

I think the tension in this topic comes a bit from a lack of transparency on what these policies do and splitting the housing issue into two - affordability and desnification/output. Cities are typically more productive, and agglomerative forces make them even more productive. Thus, for the economy and overall output it is better when cities densify and more people are able to live there. This is what upzoning and other polices assist with.

However, research shows that, unfortunately, these policies do not really alter the affordability issue. One of the best recent studies on impacts of upzoning on house prices, showed that even with large upzoning prices fell by 0.5%. (the paper - https://www.nber.org/papers/w29440, my deep dive into it - https://www.nominalnews.com/p/housing-will-deregulation-fix-everything ). The reason for this 'unintuitive' result appears to be a form of arbitrage. That is, a city typically offers very high wages (for the same skill level, job etc) in comparison to the rest of the country. Thus, if housing was as cheap as the rest of the country, people would have much larger consumption in the city. This means people would want to move into the city and thus bid up land/house prices. Since the number of people living outside of cities is much larger than city sizes, we end up with a situation with infinite city demand - meaning there's always someone ready step in to the city with any new housing and pay the high price. So new houses densify, which is a good outcome, but do not impact affordability, as the price of the house remains the same.

Expand full comment
Ryan Puzycki's avatar

The good news is that most people are not political and, if they have any views on housing, those views are informed mostly by their personal experiences; so educating this group can go a long way toward expanding the YIMBY coalition, or at least broadening public support. And I definitely agree with not making it about the opponents. People watching from the sidelines see how those in the fray comport themselves, and bad behavior including ad hominem attacks can be a huge turnoff, even if your ideas are good. Nobody likes an asshole.

Expand full comment
8 more comments...

No posts