Cities like New York and San Francisco give massive contributions to the nation’s overall economy, with 380 U.S. metro areas generating 90% of the total GDP in 2012.
But a new study found that these cities can actually be making much more—a hefty $1.6 trillion more, to be exact. So why isn’t this money being generated? The answer is the lack of affordable housing inventory in urban areas.
Economists Chang-Tai Hsieh from the University of Chicago and Enrico Moretti of the University of California at Berkeley have placed a price tag on restrictive urban land use policies, The Atlantic’s CityLab reports.
According to CityLab, Hsieh and Moretti’s research is the first of its kind to develop a “defensible estimate” of the costs constrained development, such as antiquated zoning and building codes, have on the U.S. economy.
The $1.6 trillion figure was extrapolated from an analysis on the economic contribution of 220 metros to the overall U.S. economic growth over more than five decades, supplemented with data on the characteristics of workers from the American Community Survey and the Current Population Survey.
What they found was that “too much of America’s urban economic power is simply being wasted on higher housing bills.”
Related Stories
Multifamily Housing | Jun 21, 2022
Two birds, one solution: Can we solve urban last-mile distribution and housing challenges at the same time?
When it comes to the development of both multifamily housing and last-mile distribution centers, particularly in metropolitan environments, each presents its own series of challenges and hurdles. One solution: single-use structures.
Sponsored | HVAC | Jun 14, 2022
Healing the urban fabric: The surprising impact of MagicPak HVAC
The Legends at Berry active adult housing complex in St. Paul, Minnesota helped transform a former industrial site into a thriving residential campus. MagicPak All-in-One® HVAC Systems provided the energy-efficient heating needed to handle extreme Minnesota winters while enabling architects to create an inviting home environment—and even qualify for additional funding incentives.
Multifamily Housing | Jun 9, 2022
Cityview's Adam Perry on multifamily housing innovation in the Western U.S.
Adam Perry, SVP of Development and Construction Management with developer Cityview, chats with Multifamily Design+Construction Editor Rob Cassidy about the latest design and construction innovations for multifamily housing in the West.
Hotel Facilities | May 31, 2022
Checking out: Tips for converting hotels to housing
Many building owners are considering repositioning their hotels into another property type, such as senior living communities and rental apartments. Here's advice for getting started.
Multifamily Housing | May 25, 2022
9 noteworthy multifamily developments to debut in 2022
A 1980s-era shopping mall turned mixed-use housing and a mid-rise multifamily tower with unusual rowhomes highlight the innovative multifamily developments to debut recently.
Sponsored | Multifamily Housing | May 23, 2022
An Integrated WRB Sheathing System Offers Big Benefits at Big Haus
Legislation | May 20, 2022
Arlington County, Virginia may legalize multifamily housing countywide
Arlington County, Va., a Washington, D.C.-area community, is considering proposed legislation that would remove zoning restrictions on multifamily housing up to eight units in size.
