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American Focus > Blog > Economy > Housing Restrictions Hit Harder Than Tariffs
Economy

Housing Restrictions Hit Harder Than Tariffs

Last updated: June 9, 2025 12:45 pm
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As I embarked on writing this piece, my initial impulse was to cast blame on Krugman for neglecting a crucial economic issue. However, after delving into some research, my perspective shifted. Research is most enlightening when it challenges our preconceived notions, and in this case, it did. I discovered that Krugman has effectively articulated the significant economic toll of artificially inflated housing costs. Caplan, in his work Build, Baby, Build, cites Krugman’s insights:

High housing prices in slow-growing states also owe a lot to policies that sharply limit construction. Limits on building height in the cities, zoning that blocks denser development in the suburbs, and other policies constrict housing on both coasts.

Additionally, Krugman observes, “Meanwhile, looser regulation in the South has kept the supply of housing elastic and the cost of living low.”

Many economists commendably critique these restrictive building policies. However, they tend to be less vocal about the severe repercussions of these domestic constraints compared to their more vocal opposition to the relatively less harmful restrictions on international trade.

 

The aforementioned insights are drawn from my latest article for Hoover, titled “Housing Restrictions Hit Harder Than Tariffs,” published in Defining Ideas on June 5, 2025.

Explore the full article for a deeper understanding.

See also  Driver hit 2 teens on scooter, conspired to create an alibi in jailhouse phone calls: prosecutors
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