Economists have an interesting article speculating that Red State’s benefits in housing affordability may be trying to reduce.
But what if Red States’ cheap advantages begin to shrink? It could already be happening in the place. A study by Harvard’s Edward Glaser and University of Pennsylvania’s Joseph Gjolco, published in May, found that new home construction in the Big Sun Belt Metro areas, including Atlanta, Dallas, Miami and Phoenix, has slowed down and increased prices. And on June 30th, Newsom signed reforms to make it difficult for Nimby to block new homes in California.
You need to be cautious about predicting this issue. Previous posts argued that the number of regulations that hinder home building may not actually be too ugly, especially when there are many regulatory barriers. Therefore, I am not sure you have dealt with that housing problem effectively. Nevertheless, it is worth considering the implications of this positive change.
If the benefits of a red-conditioned home will be significantly reduced, conceit will feel widespread. The most dynamic cities in the Blue State have very high wages, and California has “like the gardens of Eden,” says Armlovich. He believes that if such a place actually facilitated the construction, the Exodus from blue to red could be reversed. . . .
Such a shift would also undermine the points of the Republican host’s talk, Glock argued.
Politicians in the Subred State are awakened to the threat. Texas recently passed several Immy reforms. It’s making it easier to build homes in commercial areas, lift lot size restrictions, and weaken what Texans call the “tyrant veto” that allows their neighbors to block new construction.
In a previous post, we discussed tax competition between states. The competition intensified after the salt deduction was limited to $10,000. Recently, the Congressional Increased Salt Limit has returned to $40,000, which subtly reduces tax competition between states.
In the future, housing policy could be the number one factor in competition for new residents, particularly as immigration restrictions and slows down the growth of the US population, or even sharply lowers the birth rate. California, which promotes high taxes and breeding regulations, has extremely high home prices. This suggests there is still a strong demand to live here.
It’s intertwined to see that Texas is not waiting for California’s Immy Police to see if the installation is actively trying to mitigate its own early Nimby issues.
