Tougher regulation of homebuilding makes developers more powerful

“Making big developers ‘give back’ to the community by running a gauntlet of concessions and fees seems like it should weaken their clout. Here’s why it actually does the opposite.” [Daniel Herriges, Strong Towns via Arnold Kling]

Alas, “the number of veto points over new construction is increasing,” reports Tyler Cowen on a new NBER paper. From the abstract: “the housing bust [after 2006] …did not lead any major market that previously was highly regulated to reverse course and deregulate [building] to any significant extent. Moreover, regulation in most large coastal markets increased over time.” [Joseph Gyourko, Jonathan Hartley, Jacob Krimmel, National Bureau of Economics Research via Marginal Revolution]

One Comment

  • Of course it does. This is a feature not a bug.

    It’s high time we, as a society, started recognizing clout-based systems for what they are–tyranny.