We study the equilibrium properties of an overlapping-generation economy where agents choose where to locate and how much housing
to own, and city residents vote on the number of new building permits every period. Undersupply of housing persists in equilibrium under
conditions we characterize. City residents invest in housing because they expect their investment to be protected by a majority opposed to
urban growth. They vote against growth because they have invested in local housing. This vicious cycle between ownership and urban
growth generates a tension between the common housing policy objectives of affordability for all and homeownership for most.
Ortalo-Magné, François, and Andrea Prat.
"On the Political Economy of Urban Growth: Homeownership versus Affordability."
American Economic Journal: Microeconomics,
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Housing Supply and Markets
Production Analysis and Firm Location: Government Policy