{"id":155564,"date":"2017-04-24T16:45:09","date_gmt":"2017-04-24T20:45:09","guid":{"rendered":"https:\/\/cals.ncsu.edu\/?p=155564"},"modified":"2017-08-24T10:20:52","modified_gmt":"2017-08-24T14:20:52","slug":"economic-perspective-higher-housing-costs-in-cities","status":"publish","type":"post","link":"https:\/\/cals.ncsu.edu\/news\/economic-perspective-higher-housing-costs-in-cities\/","title":{"rendered":"Economic Perspective: Higher Housing Costs in Cities"},"content":{"rendered":"

https:\/\/soundcloud.com\/user-653135353\/higher-housing-costs-in-cities<\/a><\/p>\n

MARY WALDEN:<\/b><\/p>\n

\u201cToday\u2019s program looks at higher housing costs in cities. Mike, there are complaints in many cities, including in North Carolina, of dramatically rising housing prices; both for owning and for renting. What\u2019s the cause, and what, if anything, can be done about it?\u201d<\/span><\/p>\n

MIKE WALDEN:<\/b><\/p>\n

\u201cWell I think the root cause is that in this modern era, the technological age, cities have become even more popular places to live. One reason sort of being that\u2019s where the universities are. That\u2019s often where the new tech sector jobs, for example. That\u2019s where the young people come. They get educated. They stay there. They like the amenities that cities have. <\/span><\/p>\n

\u201cYoung people today don\u2019t necessarily want to buy a house on a third of an acre. They\u2019d just as soon live in high rises, and so we\u2019re seeing more people moving to cities. You have what economists call a \u2018big increase in demand\u2019, and we\u2019re not seeing a commensurate increase in supply of new housing.\u201d<\/span><\/p>\n

\u201cThere is building that goes on, but obviously if prices are going up the supply isn\u2019t going up as fast as the demand. So what do you do?\u201d<\/span><\/p>\n

\u201cWell, some cities have said, \u2018Let\u2019s limit the number of people coming into our city.\u2019 Some have actually talked about that. Some areas have talked about that. That\u2019s very, very hard to do. Others have said, \u2018Well let\u2019s limit the number of new building that goes on.\u2019 That will actually make the problem worse because it\u2019s really a supply problem.\u201d<\/span><\/p>\n

\u201cA third approach some say is price controls, rent controls. Studies have shown that that actually reduces supply and make quality deteriorate. So many economists say that ultimately if you want to address this problem from the supply side, you have to increase the supply of housing; which is not easy because new housing impacts the environment, it impacts the quality of life and it impacts the aesthetics of the city.\u201d<\/span><\/p>\n

\u201cSo this is an issue I don\u2019t think that\u2019s going to go away. As long as cities are popular we\u2019re going to see this issue of rising prices and rising rents in cities continue.\u201d<\/span><\/p>\n","protected":false,"raw":"[embed]https:\/\/soundcloud.com\/user-653135353\/higher-housing-costs-in-cities[\/embed]\r\n

MARY WALDEN:<\/b><\/p>\r\n\u201cToday\u2019s program looks at higher housing costs in cities. Mike, there are complaints in many cities, including in North Carolina, of dramatically rising housing prices; both for owning and for renting. What\u2019s the cause, and what, if anything, can be done about it?\u201d<\/span>\r\n

MIKE WALDEN:<\/b><\/p>\r\n\u201cWell I think the root cause is that in this modern era, the technological age, cities have become even more popular places to live. One reason sort of being that\u2019s where the universities are. That\u2019s often where the new tech sector jobs, for example. That\u2019s where the young people come. They get educated. They stay there. They like the amenities that cities have. <\/span>\r\n\r\n\u201cYoung people today don\u2019t necessarily want to buy a house on a third of an acre. They\u2019d just as soon live in high rises, and so we\u2019re seeing more people moving to cities. You have what economists call a \u2018big increase in demand\u2019, and we\u2019re not seeing a commensurate increase in supply of new housing.\u201d<\/span>\r\n\r\n\u201cThere is building that goes on, but obviously if prices are going up the supply isn\u2019t going up as fast as the demand. So what do you do?\u201d<\/span>\r\n\r\n\u201cWell, some cities have said, \u2018Let\u2019s limit the number of people coming into our city.\u2019 Some have actually talked about that. Some areas have talked about that. That\u2019s very, very hard to do. Others have said, \u2018Well let\u2019s limit the number of new building that goes on.\u2019 That will actually make the problem worse because it\u2019s really a supply problem.\u201d<\/span>\r\n\r\n\u201cA third approach some say is price controls, rent controls. Studies have shown that that actually reduces supply and make quality deteriorate. So many economists say that ultimately if you want to address this problem from the supply side, you have to increase the supply of housing; which is not easy because new housing impacts the environment, it impacts the quality of life and it impacts the aesthetics of the city.\u201d<\/span>\r\n\r\n\u201cSo this is an issue I don\u2019t think that\u2019s going to go away. As long as cities are popular we\u2019re going to see this issue of rising prices and rising rents in cities continue.\u201d<\/span>"},"excerpt":{"rendered":"

The cost of housing in cities seems to constantly be housing. What, if anything, can be done about the rising home and rent prices?<\/p>\n","protected":false},"author":36,"featured_media":152480,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"source":"","ncst_custom_author":"","ncst_show_custom_author":false,"ncst_dynamicHeaderBlockName":"","ncst_dynamicHeaderData":"","ncst_content_audit_freq":"","ncst_content_audit_date":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[59,1181],"tags":[141],"_ncst_magazine_issue":[],"coauthors":[],"class_list":["post-155564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-perspective","category-newswire","tag-mike-walden"],"displayCategory":null,"acf":[],"_links":{"self":[{"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/posts\/155564"}],"collection":[{"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/comments?post=155564"}],"version-history":[{"count":1,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/posts\/155564\/revisions"}],"predecessor-version":[{"id":155565,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/posts\/155564\/revisions\/155565"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/media\/152480"}],"wp:attachment":[{"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/media?parent=155564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/categories?post=155564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/tags?post=155564"},{"taxonomy":"_ncst_magazine_issue","embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/_ncst_magazine_issue?post=155564"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/coauthors?post=155564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}