Why the Great Divide Is Growing Between Affordable and Expensive U.S. Cities

In the San Francisco-San Jose area, developed residential land grew by just 30% from from 1980 to 2010, while homes values grew by 188%

Across the country, a divide is emerging between cities that are growing outward and remaining affordable and ones that are hemmed in by geography and onerous zoning codes and are becoming more and more expensive.

As a whole, U.S. cities are expanding as rapidly as they have throughout the last half-century. From the 1950s until the 2000s they have added about 10,000 square miles per decade, or an area roughly the size of Massachusetts, according to research by Issi Romem, chief economist at real-estate site BuildZoom, to be released Monday. But beneath the surface a divide is deepening.

On the one side are legacy cities, such as San Francisco, Boston, New York and Miami that have slowed their pace of expansion dramatically since the 1970s, in part as they have added layer upon layer of building regulations. On the other side are cities concentrated in the southeast and Texas, which have grown outward and seen much slower price growth.

WSJ article by Laura Kusisto Apr 18, 2016

Why the Great Divide Is Growing Between Affordable and Expensive U.S. Cities – Real Time Economics – WSJ

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