Land-Use Restrictions and Other Barriers to Growth
Housing supply in desirable areas is being prevented by regulatory, not natural, barriers. Over the past half century, the United States has gone through a property rights revolution. In the 1960s, developers found it easy to do business in much of the country, often taking advantage of public support through eminent domain. In the past 25 years, construction has come to face enormous challenges from any local opposition. In some areas, it feels as if every neighbor has veto rights over every project. To make matters worse, the legal system frowns on side payments so that it is difficult for developers to adequately compensate neighbors for their support.
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