EconTalk Judge Glock on Zoning and Local Government
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Dec 26, 2022 Economic historian Judge Glock shares his insights on zoning and its surprisingly small impact on housing affordability. He promotes a rethink of property taxes, arguing they can be beneficial if managed well. Glock contrasts U.S. zoning practices with those in Japan, delving into the complexities of urban sprawl and its environmental effects. With a focus on local governance, he advocates for flexible zoning policies and diverse community choices that could improve housing markets, especially in areas like the Bay Area compared to Houston.
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American Housing Affordability
- American housing affordability is good, especially compared to other Anglophone countries.
- The price-to-income ratio is around four in the US, versus seven or eight in Australia, New Zealand, and Japan.
Zoning and the Free-Rider Problem
- Zoning may solve the free-rider problem inherent in Tiebout's hypothesis of local government competition.
- It links property taxes to housing wealth, incentivizing investment in public goods.
Affordable Housing and Zoning
- Glock observes that affordable housing often exists in areas with single-family zoning.
- Cities like Nashville, Atlanta, and Oklahoma City exemplify this, challenging the idea that zoning is the primary affordability barrier.