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May 23, 2023Liked by Kevin Erdmann

What's ironic is that Arizona shows a better rebound from the Great Recession in terms of housing starts than many other places. It's still not enough.

Yglesias has a good piece on housing this week. He singles out my home state of New Hampshire for particular criticism, which is entirely appropriate. Community level zoning regulations in that state are explicitly written, and modified periodically, to prevent new housing. How did Ben Cole phrase it?: "There are no atheists in foxholes, and there are no Libertarians when it comes to zoning."

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Even Phoenix?

Am I reading this right?

It took forty hours of work a month to pay the rent in 2015 and now 60 hours a month?

Housing costs are undercutting living standards in so many places---Canada, Australia, London, Hong Kong, West Coast. NZ has gone nuts.

What gives?

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author

Tight mortgage regulations have cut down the exurban entry level new single family home market that was covering up the inability of American cities to approve enough infill development. Now that the bandaid has been pulled off, few cities are building enough.

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Right--supply and demand still works.

And my review of Hong Hong is huge property interests work hand-in-glove with government to carefully supply the housing market.

The story on the US West Coast is obvious.

But this is becoming a global phenomenon.

I don't know why. Something inevitable about urbanization?

That is quite a drop in living standards in Phoenix you have outlined.

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