Must-Read: Jason Furman on residential housing supply, NIMBYism, and economic growth:
Low housing supply can limit workers’ ability to relocate to growing cities, lowering long-run growth & productivity pic.twitter.com/P1mw3rDlsL
— Jason Furman (@CEAChair) November 20, 2015
: Why White House Economists Worry About Land-Use Regulations: “White House economic advisers have produced a steady diet of white papers this year…
…Their latest target: land-use restrictions. Housing is growing less affordable because there’s more demand for rental and, increasingly, owner-occupied housing, but little new supply…. [Some] cities make things worse with zoning and other land-use restrictions that discourage production, said Jason Furman…. Peter Ganong and Daniel Shoag… examines the slowdown in income convergence… more common in states during the 1960s and 1970s regardless of constraints on housing supply. By the 1990s, states with more constrained housing supplies saw far less income convergence than those with less constrained housing supplies…. Only high-income workers can afford to relocate to those high-productivity cities that have tighter land-use regulations…