America is getting worse at building new homes

Source: The Economist - View Original Article
Published: Apr 30, 2020
Category:
Bias Rating:

74% Conservative


Bias Score Calculation:


Policies:

Protectionist Trade

Sentiments

95% "Berkeleyside, a news website, reported in February that a resident in California opposed a new development on the ground that the incomers' pets were ..."
92% "Developers now have to jump through more regulatory hoops than before, which stop them building the dwellings that the modern economy demands.""
91% "Yes In My Back Yard -- where activists push for regulatory changes to make it easier to build, the forces pressing down on housing ..."
86% "Other markets across America have seen similar trends.""
85% "The first relates to the rising cost of construction, which makes fewer projects viable.""
84% "It could be some time before housebuilding is once again on a roll.""
75% "In some places ism is now virulent.""
74% "But even when the economy recovers, housebuilding may not.""

We have listed the top 10 sentiments. More sentiments do exist. Please review the full article for more information.



*Our bias meter rating uses data science including sentiment analysis, machine learning and our proprietary algorithm for determining biases in news articles. The rating is an independent analysis and is not affiliated nor sponsored by the news source or any other organization

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Contributing sentiments towards policy:

95% : Berkeleyside, a news website, reported in February that a resident in California opposed a new development on the ground that the incomers' pets were "all going to come to my house and poop on my lawn".
92% : Developers now have to jump through more regulatory hoops than before, which stop them building the dwellings that the modern economy demands.
91% : Yes In My Back Yard" -- where activists push for regulatory changes to make it easier to build, the forces pressing down on housing construction are strong.
86% : Other markets across America have seen similar trends.
85% : The first relates to the rising cost of construction, which makes fewer projects viable.
84% : In the past decade it has become harder to find workers, in part because of fewer arrivals from Latin America.
84% : It could be some time before housebuilding is once again on a roll.
75% : In some places ism is now virulent.
74% : Meanwhile, since Donald Trump came to office and slapped tariffs on various imports, the cost of building materials has risen faster than overall prices.
74% : But even when the economy recovers, housebuilding may not.
70% : The rise in market concentration in housebuilding since the recession has lowered annual housing construction by about 150,000 -- or roughly one-third of the current shortfall.
69% : Housebuilding is less competitive than it once was.
68% : Economic theory suggests that firms with market power may reduce their output if it helps them maximise their profits.
66% : In many areas a small number of big firms have come to dominate the market, in part because of a series of big mergers and in part because only big firms can navigate increasingly complicated regulations.
66% : Immigration policies continue to deprive construction of much-needed labour.
62% : A new paper from Jacob Cosman and Luis Quintero, both of Johns Hopkins University, finds evidence of this.
61% : Since the recession the market share of Las Vegas's top three housebuilders has increased from one-third to over 40%, according to Home Builders Research, a local firm.
59% : A second factor -- tighter regulations -- may play an even bigger role.
59% : Political scientists have noted that in recent years America's cities have shifted leftwards.
57% : The disruptions associated with the coronavirus pandemic will slow down construction for some time.
53% : Few politicians are interested in solving America's competition problem -- and the big housebuilders enjoy being the only ones who understand increasingly gnarly regulations.
51% : Since 2015 house prices have risen by 10% a year, not far off the dizzying price growth of the years leading up to the financial crisis.
49% : Another is that, following the bust a decade ago, homeowners are especially keen to preserve their property values, and are thus trying harder than they were to block development.
47% : The third reason for America's housing scarcity is linked to a problem that now afflicts many markets, from airlines to beer to hospitals.
46% : More acute ish tendencies may be the consequence.
43% : Some say it is merely the continuation of a long historical trend (the regulation of land has been getting tighter since at least the 1960s).
42% : Labour costs have risen: in March construction-workers' pay in Nevada was 6% higher than it was a year ago.
40% : Certainly, in liberal utopias such as Burlington and San Francisco, where residents flaunt their environmentalist and anti-gentrification credentials, getting any housing development off the ground is a nightmare.
36% : The share of areas imposing minimum-lot-size restrictions (which make it more difficult to build dense housing) has risen from 84% to 94%.
34% : Though there are stirrings of a "" movement -- "
27% : Yet housebuilders are not merely the victims of overbearing bureaucrats or sharp-elbowed activists.
26% : Mr Aastveit's co-written paper, in slightly more formal language, finds that "housing-supply elasticities have declined more in areas where land-use regulation has tightened the most.
24% : ■ This article appeared in the United States section of the print edition under the headline "The house loses"
21% : In 2019 just 2% of houses in Nevada lay empty, close to a record low -- and quite a change from the early 2010s, when abandoned properties with "No Trespassing" signs blighted the suburbs of Las Vegas.
21% : Yet even before the pandemic, something was amiss with Nevada's housing market.
18% : Even before covid-19 struck, housing supply was not responding to demand as it ought to O on from its almighty bust, Nevada's housing market was on a roll.
15% : Ed Glaeser of Harvard University floats another intriguing theory -- that places with lots of progressive folk are more likely to oppose development.
13% : According to a recent paper by Joseph Gyourko of the University of Pennsylvania and colleagues, project-review times have increased in many areas since the mid-2000s.
10% : No one knows for sure why Americans have become less receptive to new housing development.
8% : Though it looks as if there was money to be made, housebuilding has been remarkably weak (see chart).

*Our bias meter rating uses data science including sentiment analysis, machine learning and our proprietary algorithm for determining biases in news articles. The rating is an independent analysis and is not affiliated nor sponsored by the news source or any other organization

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