Zoning restrictions are making the construction of housing more difficult, and that is driving up the cost of housing in many cities.
What’s more, that effect is having an impact beyond the construction industry, according to a study by two economists, Chang-Tai Hsieh of the University of Chicago and Enrico Moretti of the University of California at Berkeley. They estimate that zoning restrictions reduced U.S. GDP as a whole by 9% percent a year, or roughly $1.5 trillion a year.
Some urbanists and city planners view the key to rebuilding cities, reigniting innovation, and improving productivity is to do away with onerous zoning codes and land-use restrictions that stymie much-needed development. This is particularly true when it comes to housing in certain technology and economic hubs such as like New York and San Francisco.
The two economists recently published an update to their study, and found that such zoning constraints lowered the aggregate growth by more than half between 1964 and 2009. The study advocates for investing in mass transit, light rail, subways and high-speed rail to connect places together. Such investments in transit are likely to have a much bigger positive economic impact than eliminating land use restrictions by linking job centers to outlying places, where land is relatively cheap and housing more affordable, the economists argue.
Related Stories
Sustainability | Nov 1, 2023
Tool identifies financial incentives for decarbonizing heavy industry, transportation projects
Rocky Mountain Institute (RMI) has released a tool to identify financial incentives to help developers, industrial companies, and investors find financial incentives for heavy industry and transport projects.
Mass Timber | Oct 27, 2023
Five winners selected for $2 million Mass Timber Competition
Five winners were selected to share a $2 million prize in the 2023 Mass Timber Competition: Building to Net-Zero Carbon. The competition was co-sponsored by the Softwood Lumber Board and USDA Forest Service (USDA) with the intent “to demonstrate mass timber’s applications in architectural design and highlight its significant role in reducing the carbon footprint of the built environment.”
Resiliency | Oct 19, 2023
Jacksonville unveils 50-year strategy for resiliency to flooding, extreme heat, wildfires
The City of Jacksonville, Fla., recently released plans for Resilient Jacksonville, a 50-year resiliency strategy to reduce the risks from flooding, hurricanes, excessive heat, and wildfires, and to respond better to those events. The plan includes ways to stop the St. Johns River from flooding vulnerable neighborhoods, including those prone to flooding during heavy rain or hurricanes.
Building Materials | Oct 19, 2023
New white papers offer best choices in drywall, flooring, and insulation for embodied carbon and health impacts
“Embodied Carbon and Material Health in Insulation” and “Embodied Carbon and Material Health in Gypsum Drywall and Flooring,” by architecture and design firm Perkins&Will in partnership with the Healthy Building Network, advise on how to select the best low-carbon products with the least impact on human health.
Contractors | Oct 19, 2023
Crane Index indicates slowing private-sector construction
Private-sector construction in major North American cities is slowing, according to the latest RLB Crane Index. The number of tower cranes in use declined 10% since the first quarter of 2023. The index, compiled by consulting firm Rider Levett Bucknall (RLB), found that only two of 14 cities—Boston and Toronto—saw increased crane counts.
Office Buildings | Oct 19, 2023
Proportion of workforce based at home drops to lowest level since pandemic began
The proportion of the U.S. workforce working remotely has dropped considerably since the start of the Covid 19 pandemic, but office vacancy rates continue to rise. Fewer than 26% of households have someone who worked remotely at least one day a week, down sharply from 39% in early 2021, according to the latest Census Bureau Household Pulse Surveys.
Contractors | Oct 19, 2023
Poor productivity cost U.S contractors as much as $40 billion last year
U.S. contractors lost between $30 billion and $40 billion in 2022 due to poor labor productivity, according to a new report from FMI Corp. The survey focused on self-performing contractors, those typically engaged as a trade partner to a general contractor.
Products and Materials | Oct 10, 2023
‘Works with WELL’ product licensing program launched by International WELL Building Institute
The International WELL Building Institute (IWBI) recently launched the Works with WELL product licensing program. Works with Well certification allows manufacturers to demonstrate that their products align with WELL strategies.
Mass Timber | Oct 10, 2023
New York City launches Mass Timber Studio to spur more wood construction
New York City Economic Development Corporation (NYCEDC) recently launched New York City Mass Timber Studio, “a technical assistance program to support active mass timber development projects in the early phases of project planning and design.”
Codes and Standards | Oct 10, 2023
Green Seal will not certify any paints, coatings, floor care products containing PFAS
Green Seal will no longer certify any paints and coatings, floor care products, adhesives, and degreasers containing any per- and polyfluoroalkyl substances (PFAS), commonly called “forever chemicals.”
