Cato Daily Podcast

Housing, Building Codes, and State-Level Reform

11 snips
Jan 10, 2025
Emily Hamilton, Director of the Urbanity Project at the Mercatus Center, dives into the pressing housing crisis in America. She argues for reduced government intervention in zoning and building codes, citing how these regulations inflate construction costs. Hamilton contrasts housing dynamics in Texas and California, discussing the challenge of increasing density amid local opposition. She emphasizes the importance of transparent land use regulations and advocates for legislative strategies that address high housing costs while balancing health, safety, and neighborhood character.
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INSIGHT

Rising Housing Costs

  • Housing costs, as a percentage of income, have risen since the 1960s, unlike other goods.
  • This isn't due to inflation or changing demographics, but rather a lack of new housing.
INSIGHT

Housing Shortage

  • Not all types of housing are equally desired or available.
  • There's a significant shortage of smaller apartments in expensive, high-growth cities.
INSIGHT

Local Control and Housing

  • Local governments have an incentive to control what gets built, sometimes creating opportunities for graft.
  • States are hesitant to interfere with local control, but affordable housing is generally desired.
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