Restrictive state and local land-use regulations are a key factor in escalating housing prices.
These escalating prices have contributed to high rates of foreclosure that are concentrated in regions with restrictive land-use regulations.
The implementation of “smart growth” strategies in many communities has contributed to restrictive land regulations.
Areas with less land-use regulation consistently sustain affordable housing prices, while regions with greater regulation consistently sustain prices that are unaffordable to the majority of those living in the region.
Such land-use regulations are not unique to the United States; other countries, where housing prices have soared even higher, have recognized their harm and are now attempting to reform them.
Future federal housing-assistance programs should be linked to a requirement to lessen the burden of these regulations.
Read Entire Study in PDF Format (7 Pages)
Reprinted with the permission of The Heritage Foundation.