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Regulation and the Rise of Housing Prices in Greater Boston

Using a detailed dataset of zoning and land use regulations in the region, this analysis found that the zoning practices common to many communities in the region (particularly large lot zoning, restrictions on development near wetlands, septic rules, and subdivision requirements above the state minimums) were significantly restricting the development of new homes and contributing to the rapid increase in housing prices in the Boston area.




Job Creation and Housing Construction: Constraints on Metropolitan Area Employment Growth

Author Raven E. Saks, an economist from the Federal Reserve Board, finds that in places with relatively few barriers to construction, an increase in housing demand leads to a large number of new housing units and only a moderate increase in housing prices. In contrast, for an equal demand shock, places with more regulation experience a 17 percent smaller expansion of the housing stock and almost double the increase in housing prices.