The anti-abundance critique on housing is wrong (derekthompson.org)

Article summary

The article argues that the anti-abundance critique on housing, which claims that homebuilding monopolies are the main cause of America's housing woes, is incorrect. The author cites evidence that developer profits have remained steady and that the largest homebuilding markets are not concentrated enough to be considered oligopolies. The article also points out that industry experts disagree with the antitrust advocates' claims that homebuilding monopolies are holding back national housing construction. The author concludes that the main bottleneck to homebuilding is legal barriers to construction, such as zoning laws and minimum lot sizes.

Main themes

• Housing market
• Monopoly and antitrust
• Homebuilding and construction
• Zoning laws and regulations
• Affordable housing

What commenters say

• The main problem in the housing market is not monopolies, but rather the lack of affordable housing options due to regulatory barriers and land-use constraints.
• The analogy between the car market and the housing market is flawed, as houses appreciate in value over time, whereas cars depreciate.
• The construction of luxury housing does not address the housing crisis, as it does not provide affordable options for low-income buyers, and instead caters to the high-end market.
• Land-use regulations and zoning laws are a major obstacle to increasing the supply of affordable housing, as they limit the density and type of housing that can be built.
• The cost of building new housing is driven up by factors such as labor costs, regulatory compliance, and land acquisition, making it difficult to build affordable housing.
• A land value tax could help solve the problem of unaffordable housing by incentivizing developers to build more densely and efficiently.
• The idea that rich people do not buy second homes is incorrect, and the construction of luxury housing can lead to a reduction in demand for older, more affordable housing units.
• The appreciation of house values is not inherent, but rather a result of artificial scarcity created by zoning laws and land-use regulations.