This study reviews evidence on the effects of zoning and land-use regulation in three related areas: housing supply, housing affordability, and economic growth. The academic research on property regulation indicates that increased regulation is associated with a decline in supply, affordability, and growth. The literature indicates the effects are large, with a recent study suggesting that—because of regulation—economic growth declined by 50 percent and economic output declined by 8.9 percent between 1964 and 2009.
This study reviews evidence on the effects of zoning and land-use regulation in three related areas: housing supply, housing affordability, and economic growth. The academic research on property regulation indicates that increased regulation is associated with a decline in supply, affordability, and growth. The literature indicates the effects are large, with a recent study suggesting that—because of regulation—economic growth declined by 50 percent and economic output declined by 8.9 percent between 1964 and 2009.
Imagine having everyone's usable income rise between 8.9% and as much as 50%! That's a huge benefit. We are seeing some efforts in that direction: https://www.penguinrandomhouse.com/books/585765/golden-gates... but not as much as we should.