The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Housing Supply

  • Raven E. Saks
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2425

Abstract

This article reviews the key factors that influence the elasticity of housing supply in the United States. When housing demand increases, the response of the housing stock is determined by physical construction costs (materials, labour and land) and government regulation. During the past several decades, a widespread adoption of restrictive land-use policies has substantially reduced the elasticity of housing supply in many parts of the United States. As the housing stock has become more inelastic, housing supply conditions have become progressively more important for understanding the dynamics of house prices and the form of urban growth and decline.

Keywords

Construction costs House prices Housing supply Income distribution Land-use regulation Public housing Real estate Urban economics Urban growth Zoning 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Raven E. Saks
    • 1
  1. 1.