Inflation & Housing: Zoning & Mortgage Regulations Increase Costs

Building regulations and mortgage regulations drive up housing costs.




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inflation is no longer by the wayside as more money, lower interest rates and government incentives drive consumer demand, particularly in the residential sector. House prices have risen faster than they did during the infamous bubble of the 2000s. A classic case, it seems, is that demand (i.e., money) outstrips the ability of suppliers to produce the goods that people want to spend that money on, resulting in soaring prices. But today’s housing market has even more to offer.

To see what’s so strange, take a closer look at “Demand” for housing. There is a demand for accommodation, which is expressed in rental expenses. …

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