The same demand shock plays out differently where housing is constrained.

The model predicts a smaller housing response and a larger price response in more regulated metropolitan areas.

FROM THE PAPERFigure 2 · Long-run response to labor demand

Source: Saks (2008) · Figure 2; PDF p. 11

Keep in mind: These curves are estimated model responses, not a randomized comparison between regulated and unregulated cities.

Share the evidence

The model predicts a smaller housing response and a larger price response in more regulated metropolitan areas.

Source: Saks (2008)
Figure: Figure 2 · Long-run response to labor demand · Figure 2; PDF p. 11
Keep in mind: These curves are estimated model responses, not a randomized comparison between regulated and unregulated cities.

Too many people are chasing too few homes. See why—and what communities can do about it.