The dangerous information is that America’s housing affordability disaster has gotten even worse. Rents will most likely come down over time in locations the place housing building isn’t prevented by extreme regulation. (Sorry, that is one coverage space the place blue states typically get it improper whereas many purple states get it proper.) However NIMBYism in locations like California and, sure, New York will do much more harm within the remote-work period.
The housing story, then, is that the pandemic modified the best way we stay and work — or, extra probably, introduced ahead adjustments that have been going to occur finally. This led individuals to need more room at dwelling. And that’s OK. What we’d like now could be to let markets give individuals what they need, at a value extra individuals can afford.
That is from Paul Krugman, “Wonking Out: How the Distant Work Craze Made Housing Affordability Worse,” New York Occasions, September 30, 2022.
HT2 Cyril Morong.