https://marginalrevolution.com/marginalrevolution/2025/06/americas-housing-supply-problem-the-closing-of-the-suburban-frontier.html
Housing prices across much of America have hit historic highs, while less housing is being built. If the U.S. housing stock had expanded at the same rate from 2000-2020 as it did from 1980-2000, there would be 15 million more housing units.
Why isn’t more new housing being built?
Zoning rules? Too much government interference?
Houses continue to grow in size but lot size shrink. I see in my home town medium priced houses only have 25-30 feet between them.
And little to none low cost housing is being built. Why? Perhaps the awarding of tax credits system.
https://marginalrevolution.com/marginalrevolution/2025/05/affordable-housing-is-almost-pointless.html
What is the most important feature of affordable housing? Simple! It’s right there in the name, right? Affordable. But no. When the Illinois Housing Development Authority (IHDA) evaluates housing projects for tax credits it gives out points for desirable projects. Quoting Richard Day:
For the general scoring track, 10% of points are awarded for extra accessibility features, 13% are awarded for additional energy efficiency criteria, 15% are awarded based on the makeup of the development team, and an extra 4% are headed out to non-profit developers. Only 3% of scorecard points are awarded based on project cost.
Well what about Pacific Palisades? It was an existing development that burned 6 months ago. How is the rebuilding going?
Bass crowed in a May 26 X post that was accompanied by tear-jerker music, “Homes are under construction throughout the Palisades — ahead of expectations.
“We’ve taken action to cut red tape and expedite the permitting process to get families home.”
She also made a big show of meeting Lopes outside his house to talk about all she had done.
Lopes said he is grateful for the mayor’s visit but added he’s had to struggle with officials at every turn.
Lopes said he was only able to get started so quickly because he was rebuilding his house exactly as it was constructed just a few years ago — and he’s shelled out millions of dollars and pulled out all the stops to get it done.
https://smdp.com/uncategorized/hundreds-choose-to-sell-rather-than-rebuild-after-palisades-fire/
Nearly 300 Pacific Palisades residents have decided to sell their properties rather than rebuild following devastating wildfire damage, while fewer than 100 have begun reconstruction efforts.
Access restrictions complicate the sales process. Much of the Palisades remains closed except to those with special permits, forcing potential buyers to purchase properties sight unseen. Pacific Coast Highway, the main access route, has been closed since the fire, creating lengthy detours that significantly extend commute times.
For residents choosing to rebuild, the process proves challenging and costly. In county areas, only 10% of damaged or destroyed homes have submitted rebuilding applications, with just one permit issued. Within city limits, 23 permits had been approved as of late April, representing a 2% rebuild rate—half the number of those opting to sell.
We all want safe housing that is energy efficient. It seems that convoluted government rules & regulation is hindering new and rebuilding construction.
