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@ Alex B.
"My point is simple: constraints on supply mean that the market is not operating efficiently. Our current housing market is not efficient at all."

I'm assuming by constraints you mean regulations such as zoning which dictate what can be built where and how large can it be, like height restrictions. Does this mean that only a city with no zoning has an efficiently operating market? That would mean that places like Houston are efficient markets while DC is incredibly inefficient. What if some of those very regulations (like form based codes)ensure the building of a lovely environment which spurrs the market along, while no zoning creates the opposite. Isn't the "free market" full of developers wanting to control their developments with regulations (HOA) to ensure their investments? Where's this clear line you're implying between efficiently running markets and not? I'm afraid it's not that simple.

by Thayer-D on Dec 19, 2012 8:10 pm • linkreport

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