While I think the article does a good job breaking down the costs, the top comment does a better job highlighting the arbitrary restriction of supply as the primary source of housing costs (though, the article does get there in the end and makes effort to highlight zoning in the conclusion.)
It should be considered that, in a market where supply is limited, the economics of scaling housing development are also limited, such that the associated costs of building go up. Fewer opportunities to build means fewer materials suppliers, fewer labourers, etc. which can mean price gouging when demand is bursting.
Zoning restrictions and building code are the primary causes from which (virtually) all systemic issues originate.
They are also the easiest to fix, and can be rewritten overnight if needed. We just don't see enough outrage yet, but I believe the pitchforks are coming for city councillors across Canada and the US.
It should be considered that, in a market where supply is limited, the economics of scaling housing development are also limited, such that the associated costs of building go up. Fewer opportunities to build means fewer materials suppliers, fewer labourers, etc. which can mean price gouging when demand is bursting.
Zoning restrictions and building code are the primary causes from which (virtually) all systemic issues originate.
They are also the easiest to fix, and can be rewritten overnight if needed. We just don't see enough outrage yet, but I believe the pitchforks are coming for city councillors across Canada and the US.