The Libertarian Case for Single-Family Homes

After spending more than 25 years opposing central planners who want to densify cities, I’ve been dismayed to find I also have to oppose people who claim to support free markets who want to abolish single-family zoning. I’ve made the best case I can for single-family housing in an article in Liberty Unbound, the on-line version of what was once Liberty magazine.

My argument is simple. Around 80 percent of Americans want to live in single-family homes, but most urban planners think that well over 20 percent — some plans even call for more than 50 percent — should live in apartments. Any policy that reduces the supply of single-family homes in order to increase the supply of apartments therefore supports the goals of the central planners, and true libertarians should oppose such policies as they undermine consumer preferences. Continue reading

Don’t Bunch Up

“One of the first things you learn in the Army,” wrote Stephen Ambrose after 9/11, is “don’t bunch up,” as dense groups make “tempting targets.” The once-feared Russian army is still learning this lesson.

“After strikes [by Ukraine] on large ammunition and fuel depots, the depots
were being dispersed in order to avoid a large loss of materiel in the event of strikes,” thus reducing losses, wrote one Russian. Yet the army failed to disperse personnel, and a New Years Day strike by Ukrainian HIMARS missiles on a single building killed hundreds of soldiers. Apparently, the Russian army had not only brought those soldiers to the building, it also stored ammunition there, making the destruction that much worse. Continue reading

Let Cities Be What They Want to Be

An on-line site called the Dumber, er, I mean Intelligancer says that, for cities to survive, developers must be allowed to convert office buildings into housing. There are a lot of problems with this recommendation.

Your former office today. Photo by Tomi Knuutila.

There are a lot of problems with this recommendation. First, both people and jobs are moving away from the cities, so who is going to want to live in former office buildings anyway? Second, office buildings are not designed for human habitation, so converting them will be expensive, probably far more expensive than the single-family homes people are moving to. Third, if cities allow such conversions, and they don’t happen, you know what the next step will be: cities will begin subsidizing such conversions. Continue reading

Density and the Fertility Trap

Yesterday, Tyler Cowan mentioned in the Marginal Revolution blog that he wished books on urban areas “would spend more time discussing whether dense urban areas are simply a fertility trap.” I’m not going to write a book about it, but it may be one more reason why planners’ mania for density is a bad idea.

There appears to be a correlation between state fertility rates and land-use regulation aimed at increasing urban densities. Click image to go to a Wikipedia article on fertility rates by state.

A fertility trap, sometimes called a low fertility trap, is a situation where a nation’s birth rate has declined below the replacement rate of 2.1 children per woman. Within a generation, this leads to a reduction in the number of young people working, which means — in a country that has a social security system, as most developed countries do — the number of older people that each young person must support increases. Continue reading

U.S. Not Running Short of Land

Alert the FBI! Someone has stolen and hidden away most of the land in the United States. At least, that’s the message I get from a recent Wall Street Journal article that claims that “the U.S. is running short of land for housing.”

More than 600,000 acres of land like this can be found outside of San Jose. It isn’t prime farm land, nor is it too steep to build on. Yet San Jose has some of the most expensive housing in America because almost no one can see that this land is available for housing.

According to a 2017 land inventory by the Department of Agriculture, the contiguous 48 states have about 1.9 billion acres of land. Of these, about 116 million have been developed (including rural developments such as roads and railroads). Another 406 million acres are federal. The USDA doesn’t say so, but about 70 million acres are state land. An unknown number are county or city lands, but it is probably under 50 million acres. Continue reading

Is Wall Street Making Housing Unaffordable?

“Wall Street is snapping up [single-] family homes,” reports the Economist. This isn’t exactly news. A year ago, CNN reported the same thing. Two years ago, the New York Times reported a “$60 billion housing grab by Wall Street.” Three years ago, the Atlantic announced that “Wall Street is your landlord.”

Wall Street’s or your street? Photo by isipeoria.

These articles are often accompanied by an implicit accusation that Wall Street speculators are responsible for housing becoming unaffordable. Sometimes the accusation is more explicit. A year ago, Tucker Carlson claimed that the “phenomenon of skyrocketing house prices is being driven by Wall Street outbidding normal Americans trying to buy homes.” Earlier this week, HousingWire.com claimed that “Institutional purchases are . . . making houses less affordable.” Continue reading

Pandemic Increases Homeownership

The nation’s number of occupied homes grew by 3.9 percent between 2019 and 2021, representing 4.7 million units of new homes, according to table B25032 of the American Community Survey. More than 98.5 percent of those new units were owner occupied, while rental housing grew by just 0.2 percent or less than 1.5 percent of total new homes.

More than three-fourths of new homes were single-family detached homes, reflecting the preferences of most (about 80 percent) Americans for such homes. Another 16 percent were single-family attached (row houses), while only 12 percent were multifamily. Continue reading

Housing Policy Debate

Last week, the Antiplanner participated in a Federalist Society debate over housing issues, which can now be downloaded as a podcast. Leading off the debate was Richard Rothstein, an NAACP-affiliated attorney whose book, The Color of Law, argued that zoning and lending has historically discriminated against blacks. His presentation claimed that such discrimination continues in today’s suburbs and his solution was to rezone the suburbs to allow lower-cost housing such as garden apartments and townhouses.

Land-use policies that artificially increase housing shortages force more people to live in apartments when they would rather live in single-family homes. Photo by Pubdog.

Next came Vanderbilt University law professor Christopher Serkin, who said that he personally favored higher density development but noted that most Americans did not. He was followed by Notre Dame law school professor Nichole Garnett, who was also a little skeptical about planning for density. Continue reading

America’s Two Housing Markets

Imagine that, on top of all our other problems, the United States had a shortage of pickup trucks. While many pickups are purchased for recreational purposes, they also play vital roles in construction, farming, forestry, and other industries. The impacts of a shortage could reverberate throughout the economy.

Click image to download a three-page PDF of this policy brief.

A California politician says he has a solution to the pickup shortage: Simply buy old pickups, scrap them, and use the materials to build subcompact cars such as the Chevrolet Spark or Mitsubishi Mirage. Full-sized pickups typically weigh twice as much as subcompacts, so this program could flood the market with two or more vehicles for every one that is scrapped. That would have to reduce the price of pickups, wouldn’t it? Continue reading

Americans Prefer Single-Family Neighborhoods

Many surveys have found that the vast majority of Americans, including Millennials, prefer or aspire to live in single-family homes. But surveys rarely ask whether they prefer that single-family home to be in a low-density neighborhood or if they would mind living next to a bunch of apartment buildings.

Would you want one to move next-door to your single-family home? This is real affordable housing, by the way: one of these condos is currently selling for $527 per square foot.

However, a polling firm called YouGov recently asked Americans whether they thought low-density neighborhoods were better than high-density ones. Specifically, they were asked whether low densities meant more or less congestion, more or less crime, and were better or worse for the environment. Planning advocates, of course, claim that high densities mean less congestion, are better for the environment, and have less crime because there are more “eyes on the street.” Continue reading