We investigate the evolution of housing provision in the four largest metropolitan statistical areas (MSAs) in California and Texas. Despite differences in their landscapes and regulatory settings, we identify several common trends. As these MSAs expand, fewer new net units are being constructed on the outskirts, and a smaller proportion of these new units are single-family detached houses. More new net units are now being built in infill locations, using higher-density and more expensive multifamily housing construction methods. Notably, these housing supply trends appear in both “pro-growth” and “highly regulated” MSAs alike. Additionally, across all sampled MSAs, there’s a decreasing share of Census tracts accommodating growth. Our findings support the existence of a convex housing supply curve. We anticipate that this ongoing trend will present significant challenges to many urban housing policies aimed at enhancing affordability.
That is from a newly published paper by Anthony W. Orlando and Christian L. Redfearn. Via the excellent Kevin Lewis.
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