The Economic Perspective: “Location and the Cost of Housing”

This is Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program looks at location and the cost of housing.  Mike, in many cities there is a concern about the cost of housing.  There’s a worry the price of an apartment or modest home has risen far above what can be afforded by middle income households.  What’s happened, and what can be done?

  • Simple economics – many cities have become very popular as locations for new companies and residencies for young college educated workers
  • They like convenience and amenities
  • But, the added attractiveness of cities has pushed up land prices, and this translates to higher housing prices
  • Several options for addressing
  • Reexamine regulations and perhaps revise to stimulate more residential construction
  • Also, encourage construction innovations – in materials, and in shared spaces
  • Last, development better transit options for households living outside the city but working within the city – high speed bus lines are an example
  • I’m MW

And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.