Smart growth and other land use restrictions cost U.S. homebuyers at least $275 billion in 2005, according to a new report by Randal O'Toole and the American Dream Coalition. O'Toole calls the additional costs 'The Planning Penalty.'
When cities adopt smart-growth or growth-management plans, their housing quickly becomes unaffordable, charges O'Toole. This new report attempts to put a price on that unaffordability.
The report estimates that planning-induced housing shortages in more than fifty metropolitan areas penalized homebuyers by increasing housing costs by $100,000 to $850,000 per median home. In fifty more, costs are increased by $25,000 to $100,000.
More than 90 percent of the total $275 billion cost is in just twelve states (CA, NY, FL, NJ, MA, IL, WA, CT, AZ, CO, OR, MD) account for more than 90 percent of all planning penalties. whose cities have the most restrictive land-use rules. The report recommends that those cities relax their rules and urges other cities not to adopt similar rules.
Thanks to Randal O'Toole
FULL STORY: The Planning Penalty
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