Deirdre McCloskey, an economist and historian, joins fellow economist Art Carden to unravel the bizarre legacy of outdated laws originally aimed at brothels that now stifle boarding houses. They tackle how these restrictions contribute to socioeconomic segregation and limit affordable housing for students and immigrants. The duo also explores the shocking potential GDP boost from flexible migration policies, the historical roots of the current housing crisis, and the push and pull of community desires against the need for diverse housing solutions.
Outdated laws originally aimed at preventing prostitution are now inadvertently restricting affordable housing options for students and unrelated individuals.
The NIMBY mentality among wealthier communities is contributing to housing shortages by opposing multifamily developments, severely impacting lower-income populations' mobility.
Deep dives
The Impact of Outdated Housing Laws
Outdated laws that were initially designed to prevent the establishment of brothels are now hindering the availability of affordable housing for unrelated individuals, particularly in college towns. These laws restrict the number of unrelated people who can live together, thereby limiting options for students and others seeking shared housing arrangements. The unintended consequences of such regulations extend to broader housing shortages, as they deter the development of rooming houses that once provided crucial affordable accommodations. This situation illustrates the need for a thorough reevaluation and potential repeal of antiquated statutes that do not align with contemporary housing needs.
NIMBYism and Housing Restrictions
The Not In My Backyard (NIMBY) mentality is prevalent among wealthier communities that often oppose the construction of multifamily housing and other types of affordable living arrangements. This resistance stems from fears of decreased property values and unwanted changes to neighborhood character, resulting in laws that create internal restrictions on living arrangements for lower-income populations. Such policies contribute to significant barriers for individuals seeking better employment opportunities, effectively limiting their mobility within urban areas. Economic analyses suggest that failing to address these housing restrictions costs the economy billions in potential GDP growth by hindering the movement of workers near jobs.
Historical Context and Housing Solutions
Historically, lack of stringent housing regulations allowed for the development of low-cost housing options, contributing to lower homelessness rates in the 19th century. Reformers of the past aimed to improve living conditions but often inadvertently made affordable housing illegal, leading to current housing crises characterized by high rents and insufficient availability. This discussion emphasizes the dark side of well-intentioned reform, as some policies intended to help the poor can end up exacerbating their struggles. Recent developments in places like California, however, show a movement towards easing housing regulations by removing unnecessary requirements, such as parking mandates, potentially alleviating these ongoing issues.
An old and common law on many cities' books was meant to crack down on houses of prostitution. Today those same laws are used to effectively ban boarding houses or college student housing. Deirdre McCloskey and Art Carden tell the tale.