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RESEARCH ROUNDUP
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August 22, 2020
New Mercatus Research
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Liberalizing Land Use Regulations: The Case of Houston
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Nolan Gray and Jessica McBirney
As of 2018, half of all American renters spent more than a third of their income on rent – and a quarter spent more than half of their income on rent. The grim reality of the housing affordability crisis is a pressing concern for mayors across the nation, but there is good news: policymakers and planners can ameliorate this crisis by liberalizing the restrictions on land use that drive up housing costs and block new development.
In their new policy brief, Nolan Gray and Jessica McBirney illustrate how Houston’s 1998 subdivision reforms, which liberalized minimum-lot-size regulations, allowed developers to meet a large and growing demand among Houstonians for smaller houses closer to major job centers. They also outline a key element of their success: allowing some homeowners to opt-out of reform, thereby mitigating opposition to the broader reform.
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