New Geography's Wendell Cox shares the findings of his new report “A Question of Values: Middle-Income Housing Affordability and Urban Containment Policy," published with the Frontier Centre for Public Policy.
The report focuses on the relationships between urban containment policy, housing affordability and national economies. It casts a keen eye on key factors in middle-income housing affordability, and how higher home prices reduce discretionary incomes, which then defines the standard of living and poverty.
In addition, urban containment policies can lead to higher home prices. Urban containment severely restricts or bans development in urban fringe areas. Consistent with basic economics, this increases land values and house prices (all else equal). The planning intention and expectation is that higher housing densities will offset the land-price increases and that housing affordability will be maintained.