Housing market crisis: High home price are 'feudalizing' California
What are "urban containment policies" and how have they influenced land and home prices according to the study?
"Urban containment policies" are strategies implemented by governments to limit urban sprawl and increase population density within cities2. These policies often involve restricting the geographic extent of urban development and promoting more efficient land use within designated urban boundaries.
According to the study mentioned in the news, urban containment policies have significantly influenced land and home prices. The report explains that these policies have resulted in higher land prices due to the restricted supply of land for development. This has subsequently led to a dramatic increase in home prices within the urban containment boundaries. The study found that land prices inside these boundaries were eight to 20 times higher compared to areas outside of them. This increase in land and home prices has contributed to the housing affordability crisis, particularly affecting young people, minorities, and immigrants.
What was the intended purpose of increasing density through urban planning policies, and what unintended consequences did the report highlight?
The intended purpose of increasing density through urban planning policies was to limit sprawl, increase the use of public transportation, improve gridlock, and make neighborhoods more walkable. However, the unintended consequences highlighted in the report include a significant increase in land prices within urban containment boundaries, resulting in dramatically higher home prices. This has led to a housing crisis, characterized by worsening affordability and an existential threat to the middle class. The report also pointed out that all of the "impossibly unaffordable" cities follow urban planning policies favoring more density, and recommended that cities open up the availability of land to reduce housing costs.
What specific areas in California are identified as "impossibly unaffordable" according to the Demographia International Housing Affordability report?
The Demographia International Housing Affordability report identifies four areas in California as "impossibly unaffordable": San Jose, Los Angeles, San Francisco, and San Diego. These cities have median multiples of 11.9, 10.9, 9.7, and 9.5 respectively, making them some of the least affordable housing markets internationally.