A new study shows the divide between cities like San Francisco, growing housing prices with a lack of expansion, and cities like Atlanta, still expanding with prices kept under check. Co.Exist staffer Ben Schiller reports on the differences between these cities with the San Francisco-San Jose areas' available land expanding only 30% but increasing prices by 200% between 1980 and 2010 while Atlanta, on the other hand, had their footprint grow by 200% and home values only increased by 14%.
These statistics show how expensive cities are limited in their ability to add homes while expansive cities are less restrictive:
"The expansive cities’ housing supply is elastic, meaning that developers respond even to minor increases in property values by building a large number of new homes," Romem says. "Expansive cities are often located on plains or rolling hills that do not encumber development, and compared to the expensive cities ... their land use policies tend to be less restrictive."