Evan Soltas

Assistant Professor of Economics and Public Affairs, Princeton University.

[Evan Soltas @esoltas]

New paper (w/ Jon Gruber): What’s a building permit worth? And what can we learn about the importance of de-facto regulatory burdens versus de-jure constraints in housing development? We study these questions using a new setting: the market for land with preapproved permits.

[Emma G. Fitzsimmons @emmagf]

This Parking Spot Is Free. Should It Be? with @stefanoschen and @edenweingart: https://t.co/17Cb2LmCIw

[Annemarie Gray @annemariegray]

Excellent stuff by NYT Ed Board:“To bring down housing costs, cities and towns need to make two principal changes. First, they should loosen zoning laws to allow more multifamily homes. …Second, cities and towns should make it easier to build where it is already legal.”

[Jonathan Berk @berkie1]

"Americans are rightly frustrated about the high cost of housing. Fortunately, the country has decades of evidence about how to bring down those costs: We need to build more homes." - @nytimes Editorial Board

[Briefing Book @Briefing_Book]

Putting a Price on Permitting https://t.co/MvsG6oDCNg

[Jonathan Berk @berkie1]

"There is now unambiguous, solid economic evidence, not just abstract economic theory, that rent control would make the affordability problems facing [Massachusetts] worse, not better."

- Jon Gruber, Chairman of the Economics Department at MIT

[Paul E Williams @PEWilliams_]

An excellent speech worth watching from @brianschatz. Fixing the BTR provision in ROAD to Housing is the way to ensure it can be the biggest housing supply bill in decades.

[Alex Trembath @atrembath]

“Much of this confusion stems from a more fundamental disbelief that anyone could sincerely be motivated by a concern about the boring regulations that prevent the development of housing, transit, and clean energy.”

[Jerusalem @JerusalemDemsas]

In Los Angeles County, the permitting approval process is raising the price of vacant land by FIFTY PERCENT.

This is the kind of premium that comes with an oceanfront view or adding a pool.

Genuinely shocking.

(h/t @esoltas)
https://t.co/K5K0QB4qsH

[Owen Zidar @omzidar]

Striking graph from @esoltas and Jon Gruber

[Evan Soltas @esoltas]

@AzizSunderji Hi Aziz, the 50% number is a "repeat-listing" comparison of the same properties. The cross-sectional comparison does yield larger estimates (as you suggest). We also consider whether the types of properties that preapprove would get larger premia; little evidence for that view.

[Evan Soltas @esoltas]

New paper (w/ Jon Gruber): What’s a building permit worth? And what can we learn about the importance of de-facto regulatory burdens versus de-jure constraints in housing development? We study these questions using a new setting: the market for land with preapproved permits.

[Evan Soltas @esoltas]

@bobbyfijan Hi Bobby: appreciate your industry expertise on this. I'd love to see option contracts on this if you have them (we mention it on p.7). esoltas at princeton edu. I'm confident of the magnitude of the premium, at least in this sample (MLS, mostly smaller residential parcels).

[Evan Soltas @esoltas]

You can read the paper here: https://t.co/ajXmA5WzHt

[Evan Soltas @esoltas]

But permitting is just one piece of the puzzle. Is it a big deal or not? We answer that question by relating permitting to the overall "gap" between home prices and construction cost. Permitting alone explains one third of the gap, suggesting it's a key barrier to housing supply.