This week on Uncommon Knowledge, economist and author Thomas Sowell on his latest book, The Housing Boom and Bust. Today Sowell explains why housing prices rose so much in the first place.
Actually, he notes, they didn’t — except in a very few places. And in those very few places, the trouble started with . . . the government.
Despite the abundance of land in California [for instance], laws prevented people from building on much of that land. The movement for “open spaces” was one of the main reasons that housing prices shot up.