A "For Sale" sign is displayed in front of a house at the KB Home's Whisler Ridge housing community in Lake Forest, California, U.S., on Monday, Sept. 23, 2013. KB Home, a U.S. homebuilder that targets first-time buyers, reported third-quarter earnings that beat analyst estimates as prices and sales jumped. Photographer: Patrick Fallon/Bloomberg via Getty Images
Bloomberg A "For Sale" sign is displayed in front of a house at the KB Home's Whisler Ridge housing community in Lake Forest, California, U.S., on Monday, Sept. 23, 2013. KB Home, a U.S. homebuilder that targets first-time buyers, reported third-quarter earnings that beat analyst estimates as prices and sales jumped. Photographer: Patrick Fallon/Bloomberg via Getty Images

Fortune columnist Chris Matthews has a flawed grasp of what's at work in housing, but one of his conclusions rings true: "local governments should lessen restrictions on building so that home builders can construct homes where demand is greatest." Word.

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