Why housing costs so much and what can be done about it (with Alex Armlovich)

Housing unaffordability stems from a complex interplay of restrictive land-use regulations, procedural red tape, and local opposition. While demand for high-opportunity urban areas remains strong, supply-side constraints—specifically zoning laws, lengthy permitting processes, and outdated building codes—prevent the construction of sufficient housing to meet market needs. NIMBYism, often driven by a misunderstanding of how housing markets function or a desire to preserve neighborhood character, frequently blocks development, creating a tragedy of the commons at the local level. Addressing this crisis requires shifting decision-making to regional or state levels to internalize the benefits of growth, alongside reforms that align infrastructure funding with population density. Ultimately, increasing housing supply is a positive-sum endeavor that can improve affordability without necessitating the displacement of existing residents or the loss of community cohesion.