December 7, 2022

 

The dangerous information is that America’s housing affordability disaster has gotten even worse. Rents will in all probability come down over time in locations the place housing building isn’t prevented by extreme regulation. (Sorry, that is one coverage space the place blue states typically get it mistaken whereas many purple states get it proper.) However NIMBYism in locations like California and, sure, New York will do much more injury within the remote-work period.

The housing story, then, is that the pandemic modified the way in which we stay and work — or, extra probably, introduced ahead adjustments that have been going to occur ultimately. This led folks to need extra space at dwelling. And that’s OK. What we’d like now’s to let markets give folks what they need, at a worth extra folks can afford.

That is from Paul Krugman, “Wonking Out: How the Distant Work Craze Made Housing Affordability Worse,” New York Instances, September 30, 2022.

HT2 Cyril Morong.

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