Where are all the houses?
Restrictions like minimum lot sizes, mandatory parking requirements, and other prohibitions on multi-family housing that Biden’s plan references have the effect of reducing the supply of housing. For example, if there is a requirement that for every unit a developer has to provide two parking spaces, that ensures they have to set aside land for parking that could otherwise have been used for building more homes. Frequently, this leads developers to build fewer units — and more expensive ones at that.
According to the Urban Institute, by the end of 2020, there was only 2.5 months’ supply left of housing, meaning “at the current sales pace, the inventory of homes nationwide will be exhausted.”
Make no mistake about it. These restrictions are not in place on accident. They are purposely enacted to be exclusionary.