Sowell Oct 7^th

Dr. Thomas Sowell gives us a lesson in very elementary economics. He tells us that if housing demand increases and supply is constrained (by nasty government rules) then the price of housing will go up. He has apparently been traveling through southern California and it is from this region that he draws his examples.

He has noted, as he travels, that there are vast open spaces on which housing could have been constructed except for government restrictions.  He writes that, “More than half the land in San Mateo County is off limits to building…” which means that nearly half the land isn’t off limits to building. He complains that a one bedroom apartment in San Francisco costs $3,500 a month but ignores the fact that a one bedroom apartment in Manhattan costs $5,000 a month. Perhaps if it weren’t for the “self-righteous activists” in Manhattan trying to preserve Central Park, housing prices in Manhattan would come down too. Why not a Levittown where Central Park is now? Why Dr. Sowell is so upset about California housing prices while ignoring the prices in New York City is not clear; perhaps it’s the right wing hostility toward all things Californian.

Building restrictions make available housing more expensive; they also make the housing more desirable, surely Sowell knows this. Most communities have a minimum lot size, there are restrictions on how close you can build to your lot line, there are restrictions on the animals you can house on your property, in most towns you are required to have indoor plumbing. For Sowell these regulations are apparently just the result of “self-righteous activists.” For the rest of us these regulations add to civilized living.

You will note that there is obviously something else that would help people to afford a wider circle of housing prices: an increase in their take home pay! Why are we not surprised that this alternative doesn’t occur to Dr. Sowell?