ABSTRACT
This chapter analyzes government housing policies in the United States. Building codes raise housing prices, partly because they mandate a minimum quality of housing, but also because they require a specific type of construction that may not be the most cost-effective. The government policies that are critically examined in this chapter all have been aimed at problems that people perceive exist in housing markets. It deals with specific housing and land use policies and issues, and examines both how government policies address those issues and how market mechanisms can work as an alternative to government policy. One twenty-first century answer to rising housing prices is inclusionary zoning—the requirement that developers build "affordable" housing as a part of their developments. Policies that restrict the supply of housing and increase housing prices benefit existing homeowners who see the value of their homes rise.
