"Housing Supply and Housing Bubbles"

This new paper by Ed Glaeser, Joseph Gyourko, and Albert Saiz on housing bubbles and housing supply elasticity is getting a decent amount of attention in the blogosphere today. Glaeser, Gyourko, and Saiz construct a model that predicts that there will be longer and faster house price appreciation in MSAs with less elastic supply. Their model holds up pretty well when tested empirically.

I don't want to say I told you so, but . . . I told you so (see also here and here). Okay, so maybe I did want to say it.

Seeing as the proxy that Glaeser, Gyourko, and Saiz used is essentially interchangeable with the strictness of land use regulations (see pp. 22-23), maybe people will take the idea that land use regulations contributed to the housing bubble seriously. If wishing made it so . . .