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Restrictive Land-Use Regulation: Strategies, Effects and Solutions
The report evaluates currently in-vogue housing regulation strategies and their impact on middle-income housing affordability based upon experience in metropolitan area markets around the world. The report concludes that “urban growth boundaries” or “greenbelts” (as in Toronto) are the “killer app” of housing affordability. The result is higher land prices (as when petroleum exporting countries cut back on production), which drives up house prices, which denies home ownership to many and increases poverty. The report also notes that excessive fees and regulations are also driving house prices up relative to incomes.
Effectively dealing with the housing affordability crisis is important. Otherwise, worsening housing affordability could to lead to a lower standard of living, greater real poverty, and more intensified inequality. Ultimately this could impose significant costs on Canada’s economy and social structure.