"The growth controls that are driving the problem are not technological or natural. They are regulatory."
What It’s About
Armlovich and Justus analyze show that policies originally intended for racial and economic exclusion now severely limit housing density. Reduced supply of housing produces higher prices, displacing workers from thriving cities and forcing inefficient suburban sprawl.
They propose actionable state-level reforms to dismantle these barriers. Their recommendations include higher-density zoning near transit hubs, legalizing alternative housing solutions like modular homes, and removing regulatory hurdles to lower construction costs.
Upshot
Armlovich and Justus argue that:
- Housing Scarcity Is a Choice: State and local government policy decisions created the housing shortage and reversing those policies will alleviate it
- States are a Softer Target: Moving zoning decisions from local government to higher levels of government can mitigate the power of local entrenched interests
- Alternative Supply Sources are Vital: Alternatives like manufactured and modular housing can drastically reduce costs and help address the shortage, if regulatory reform allows them to
Did you know? In many U.S. states, manufactured homes—the most affordable type of housing—are legally classified as motor vehicles rather than real estate, making it nearly impossible for buyers to get a traditional mortgage.
Why It Matters
The housing crisis is a profound and self-inflicted wound to the health of our economy, limiting the prosperity of people and places alike. We have the tools to tackle the crisis, and they all point in the same direction: build.
Who Wrote It
Alex Armlovich is a Senior Housing Policy Analyst at the Niskanen Center.
Andrew Justus is a Housing Policy Analyst at the Niskanen Center.
