Regulating Affordability

Two recent op-eds illustrate the dilemmas lawmakers face when dealing with unaffordable housing. The first explains to readers on Capitol Hill how Oregon is pretending to make housing more affordable when in fact almost everything it does makes it less affordable.

The article points out that in 1971 Oregon’s then-governor Tom McCall told a national group, “We want you to visit our state, but for heaven’s sake, don’t move here!” To make sure they didn’t, the Oregon legislature passed and McCall signed a 1973 land-use law that ended up limiting all urban growth to less than 1.2 percent of the land in the state. Naturally, developable land has become expensive and housing has become unaffordable, which helps keep people from moving to the state.

The article suggests, however, the state officials must be disappointed that Washington has made itself even less affordable despite not passing a similar law until 1990. As a result, many of the efforts made to provide “affordable housing” must be viewed as ways “to prevent a flood of Washingtonians from moving into more affordable Oregon.” Rent control, which every economist agrees makes housing less affordable, is only one of the ways the state is doing that. Continue reading