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To: valkyrieanne
Housing shortages like this are not an indication of a transient problem, nor are they often isolated. Such things are a long time in developing. Besides the immigration rate creating a demand pull on an inelastic good, why is the housing stock so tight? If there were more units, then the occupancy rates would not be so high. Zoning (and housing regulations in general) is the prime culprit.

You know, I probably shouldn't have made that comment to you, only because it opens a can of worms for which I don't have time right now. Zoning is a subtle issue with which a number of complex games are played. I wrote a couple of chapters on the political and economic mechanics of zoning and environmental regulations in my book. It includes an inflation-adjusted opportunity-cost-based analysis (net of the cost of funds) of land transactions in the County of Santa Cruz, CA, under a couple of different tax scenarios extending over 30 years. During that time, a select group of developers sponsored zoning laws that literally controlled an inventory of developable rural/suburban parcels to make aquisition for conversion cheap while excluding outside competitors. They also put a squeeze on urban parcels to drive up the value around undevelopable parcels. When the market was ripe (and they had finished screwing the bag-holders) they simply had the planning department rezone previously "substandard" parcels for "in-fill." These are the classic gambits common to sustainable development (we were the first).

It's really dirty. For me to make my case I would have to familiarize you with a whole new vocabulary in order to do a comparative analysis and show how the mechanics repeat elsewhere. Then I would have to familiarize you with what some communities have done to preclude such problems. I do suggest that you consult Randal O'Toole's book: The Vanishing Automobile and Other Urban Myths where he goes into more detail on the unintended consequences of sustainable development (smart growth).

112 posted on 07/03/2002 10:27:14 PM PDT by Carry_Okie
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To: Carry_Okie
Zoning is a subtle issue with which a number of complex games are played. I wrote a couple of chapters on the political and economic mechanics of zoning and environmental regulations in my book.

I want to thank you for your thoughtful response. I've captured your post/links and will look at some of this info. when I have more time.

113 posted on 07/04/2002 5:01:53 AM PDT by valkyrieanne
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