The smart growth bubble
Richard Barber of the Mortgage Foundation decries the impact of smart-growth policies on housing availability:
A zoned-zone is an area that has embraced land-rationing policies, usually under a misleading title of “smart growth.” Policies on development such as Portland, Oregon’s urban growth boundary, and requirements for excessively large lots simply reduce the supply of land for development.
There is little argument among economists that rationing raises prices, and does so with a vengeance.
He also provides examples of less regulated markets have experienced much smaller run-ups in housing prices.