3 Comments

Thanks Cam, re-emphasising the importance of no free-entry as the reality of property and monopoly helps. This blog was well articulated.

Expand full comment

My interest is in making housing more affordable. The way to do it is to increase the supply of land by changing planning law to enable householders to rent or have a permit to park a house on land zoned rural. The potential is enormous. Lots of cash sitting in term deposits looking for a better return. A superior standard of living would be secured by restricting density and making space available for kids to play. More at: https://erlhapp.substack.com/

A means of increasing the volume of housing in existing residential zones in the USA is seen here: https://youtu.be/BGX2a4Lb7BE It's an extension of the granny flat concept.

Expand full comment

I don't see how this theory can explain the significant variation in rates of construction and housing prices across cities- particularly in the US. If developers can choose the rate of housing supply (even with many firms), what explains the difference between the ways that development markets have responded to inflows of population in Houston/Atlanta/Phoenix and the Bay Area?

Expand full comment