Housing Unaffordability is the Result of Artificial Scarcity
Housing prices conform to the laws of supply and demand. Restrictive zoning codes that prevent development result in major barriers to creating housing in the name of preserving existing neighborhoods reduce the supply of in-demand housing, raising the prices. Strong Towns provides a quick primer on how this works.
“Unaffordable housing is the result of artificial scarcity. When there is demand to live in an area, the market should naturally respond by increasing the supply of housing. Unfortunately, we restrict this, which drives up prices.”