More proof that liberal policies and too much govt control caused the housing mess.

Discussion in 'Economy' started by likeabird03, Nov 29, 2011.

  1. likeabird03
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    likeabird03 Active Member

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    Viable Opposition: Land Use Overregulation: Is it to blame for America's housing market debacle?

    Some analysts are saying that "Smart Growth" strategies and restrictive urban planning are what's most responsible for the housing bubbles in some of Americas largest metropolitan areas by creating false land shortages...

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    "Land Use Overregulation: Is it to blame for America's housing market debacle?
    The National Centre for Policy Analysis recently released its analysis of the Great Recession and accompanying housing crash in a report entitled "The Housing Crash and Smart Growth". In this report, the author, Wendell Cox, a scholar with the National Centre for Policy Analysis and a visiting professor at the Conservatoire National des Arts et Metiers national university in France, discusses the housing bubble, how it formed and how the magnitude of the issue varied across the United States and how it relates to urban planning..."

    "Mr. Cox notes that during the years between the end of World War II and the early 1970s, the median selling price of an average American home was less than or equal to three times the median household income in most markets. This ratio began to break down during the 1970s in certain states that began to impose stronger real estate development regulations. This median price to median income ratio accelerated markedly during the 1990s and 2000s when the median price rose far faster than household incomes which were basically stagnant."

    " In general, house prices rose the most on the East and West coasts of the United States and the least in "Middle America". As well, house prices rose most in metropolitan areas that are encumbered with heavy land use regulations (i.e. New York, San Diego and Miami) and least in less restricted cities (i.e. Houston and Atlanta)."
     

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