I live in Manhattan with its very high housing costs.
As Harvard Economist Edward Glaeser, Economics Nobelist Paul Krugmann, Financial Times columnist and an economist Tim Harford have been saying, the issues are politically induced housing scarcity through the use of zoning density restrictions and also overuse of historic landmark status. The use of politics to create artificial scarcity to create market inefficiencies is called "rent-seeking" in Microeconomics.
Another example was the NYC limit of 13,000 Taxi medallions which lead to a market value for medallions of $1.2 million. Then Uber/Lyft came along to disrupt the market and provide more transportation in NYC and the value of the medallions dropped to less than $700 K.
I believe that Congress is looking into the zoning form of "rent-seeking" with the understanding that zoning is not necessarily local but might be federal to override this inherent unfairness where older people housing expensive and scare for younger people.
Creating these politically induced market inefficiencies are what create an inherent transfer of wealth from the poor to the wealthy and from the young to the old and of course is a major contributor to financial inequality.
As Harvard Economist Edward Glaeser, Economics Nobelist Paul Krugmann, Financial Times columnist and an economist Tim Harford have been saying, the issues are politically induced housing scarcity through the use of zoning density restrictions and also overuse of historic landmark status. The use of politics to create artificial scarcity to create market inefficiencies is called "rent-seeking" in Microeconomics.
Another example was the NYC limit of 13,000 Taxi medallions which lead to a market value for medallions of $1.2 million. Then Uber/Lyft came along to disrupt the market and provide more transportation in NYC and the value of the medallions dropped to less than $700 K.
I believe that Congress is looking into the zoning form of "rent-seeking" with the understanding that zoning is not necessarily local but might be federal to override this inherent unfairness where older people housing expensive and scare for younger people.
For more info: Edward Glaeser: Build Big Bill (Mayor of NYC) http://www.nydailynews.com/opinion/build-big-bill-article-1....
Tim Harford: The Undercover Economist. https://www.amazon.com/Undercover-Economist-Revised-Updated-...
Creating these politically induced market inefficiencies are what create an inherent transfer of wealth from the poor to the wealthy and from the young to the old and of course is a major contributor to financial inequality.