Growth-Management Planning Efforts to control the rate and/or the location of future growth.

“Tradition has broken down. Taste is utterly debased. There is no enlightened guidance or correction from authority.” Thomas Clark

“There are hordes of hikers cackling insanely in the woods.... lying in every attitude of undress and inelegant squalor.” C.E.M. Joad

“The extension of towns must be stopped, building must be restricted to sharply defined areas.” C.E.M. Joad

That housing must be “in great new blocks of flats which will house a considerable portion of the population.” C.E.M. Joad

$933,000 in London

250-square feet Includes a 55- square-foot patio Only $479,000

London Housing Prices A 6’x9’ storage closet converted to an apartment rents for $1,400 a month A cabin made out of packing crates sold for $95,000 A 320-square-foot public toilet converted to a house sold for $195,000

Growth-Management Techniques Urban-Growth Boundaries Urban-Service Boundaries Greenbelts Agricultural Reserves Restrictive zoning Large-Scale Open-Space Purchases Limits on Building Permits High Impact Fees Lengthy Permitting Process

Coldwell Banker House

2,200-square feet 4 bedroom 2-1/2 baths Family room 2-car garage Nice neighborhood

$155,000 in Houston

$357,000 in Portland

$1,100,000 in San Jose

“Government regulation is responsible for high housing costs where they exist.” Edward Glaeser & Joseph Gyourko

Planners Knew There are “welfare tradeoffs for higher density” that “take the form of higher housing prices and perhaps lower housing output.” Metro, Metro Measured, 1994

Index is roughly the value of a 1999 median home in 2005 dollars

The Planning Penalty Added cost per median- valued home $60,000 in Portland $14,000 in Asheville $22,000 in Wilmington $850,000 in San Francisco metro area

The Total Annual Penalty Added cost to all people who bought homes in the nation, state, or region during 2005 $17 billion in Florida $136 billion in California $275 billion in U.S.A. $200 million in N. Carolina

Solutions Worse Than the Disease Inclusionary Zoning Subsidies to Low-Income Housing Rent controls Tax-increment financing These practices reduce housing costs for a small minority by driving up the cost of housing and/or taxes for everyone else

“Inclusionary zoning produces few units. After passing an ordinance, the average [Bay Area]city produces fewer than 15 affordable units per year.” Powell & Stringham

“Inclusionary zoning makes other homes more expensive. We estimate IZ causes the price of new homes in the median city to increase by $22,000 to $44,000.” Powell & Stringham

“New housing production drastically decreases the year after cities adopt inclusionary zoning.... New construction decreases 31 percent.” Powell & Stringham

“Price controls fail to get to the root of the affordable housing problem.... The real problem is government restriction on supply.” Powell & Stringham

“If policy advocates are interested in reducing housing costs, they would do well to start with zoning reform.” Edward Glaeser & Joseph Gyourko

“Had Portland's policies been applied nationwide over the last 10 years, over a million young and disadvantaged families, 260,000 of them minority families, would have been denied the dream of home ownership..” Randall Pozdena The New Segregation

“In sprawled areas, black households consume larger units and are more likely to own their homes.” Matthew E. Kahn

Urban 8.4% Other development 2.0% Rural Open Space 88.6%

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