California, Mired in a Housing Crisis, Rejects an
Effort to Fix It
“A lawmaker’s push for denser development near
transit, overriding local zoning, was thwarted by a diverse group of
legislative foes.”
Related:
Related:
Housing Economics 101:
Sen notes:
“In a normal market, a sharp decline in inventory
combined with a rise in prices would lead to a rapid increase in supply. If
there's a soybean shortage, for example, farmers will just plant more soybeans.
But the housing market is not like most markets. Supply is constrained for a
host of reasons. In desirable neighborhoods close to job centers, there's a
shortage of vacant land, strict zoning requirements and community resistance to
more housing construction. Farther out in the exurbs, where there's more land
available to develop, commutes are long and transportation options to jobs are
limited, which constrains demand. Even where there's plenty of buyer demand and
land to develop, homebuilders may be cautious about increasing production too
quickly, worried that they could get stuck with excess inventory if the market
slows”.
The Goldilocks problem of housing supply: Too
little, too much, or just right?