Tuesday, August 16, 2011

Krugman comes around

A bit surprised seeing this from Paul Krugman:
And just to be clear, there’s nothing wrong with a low cost of living. In particular, there’s a good case to be made that zoning policies in many states unnecessarily restrict the supply of housing, and that this is one area where Texas does in fact do something right.
Did Krugman just come out in favor of deregulation? I believe he did. Well, I guess stopped clocks, blind squirrels and all that.

And let's be clear, zoning policies and other associated housing regulations do in fact drive up the cost of buying a home as this chart demonstrates:

Source: Virginia Postrel

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