> Just like you shouldn’t have the right to take my property to create additional housing
That's fair enough. But the federal government provides a ton of incentives to promote home ownership. If a local community doesn't want to meet its endogenous demand for housing, it's essentially offloading the problem to other parts of the country.
A local government that artificially restricts housing should automatically lose all of these federal incentives. Because when supply is inelastic, it doesn't actually increase home ownership, just makes the existing landowning class wealthier. If a community refuses to build housing that's fine. But homes in that community will never be eligible for Fannie or Freddie mortgages. Homeowners will not get a mortgage interest tax deduction. In fact they should have to pay income tax on the value of imputed rent. No more capital gains exemption on their primary residence.
I expect some communities will still choose to keep their policies in place. But I think the vast majority of states and municipalities would change their tune pretty quick.
On of the biggest state incentives in CA that allows communities to be exclusionary without any draw back is prop 13. See how quickly opinions will change when they suddenly have to pay their fair share on local road improvements, parks, and schools. People who are late into their careers, likely making well into the mid to upper 6 figures, are borrowing from kids 20-30 who are struggling to afford rent because a duplex will 'kill their communities character.' The sudden increase in property taxes will enable cities to build the infrastructure to handle the increase in residents easily.
That's fair enough. But the federal government provides a ton of incentives to promote home ownership. If a local community doesn't want to meet its endogenous demand for housing, it's essentially offloading the problem to other parts of the country.
A local government that artificially restricts housing should automatically lose all of these federal incentives. Because when supply is inelastic, it doesn't actually increase home ownership, just makes the existing landowning class wealthier. If a community refuses to build housing that's fine. But homes in that community will never be eligible for Fannie or Freddie mortgages. Homeowners will not get a mortgage interest tax deduction. In fact they should have to pay income tax on the value of imputed rent. No more capital gains exemption on their primary residence.
I expect some communities will still choose to keep their policies in place. But I think the vast majority of states and municipalities would change their tune pretty quick.