The federal housing bill that became law this summer underscores what is among the top points of bipartisan consensus in American politics these days, which is that more housing is needed in order to bring down costs for both buyers and renters. That the supply of housing units must increase in order to meet rising demand lest prices rise will strike many as basic economics, and it is. However, politicians face pressure from influential stakeholders to ignore the basic principles of supply and demand.
Some free market conservatives have welcomed the emergence of “Abundance Democrats” who at least pay lip service to bringing down housing costs by removing regulatory impediments that inflate prices. Others have questioned the viability of such a supply-side movement in a party dominated by green groups and labor unions. Yet even in some of the reddest states, including those considered by many to be models of conservative governance, Republicans have been inconsistent in their recognition that growing supply alleviates costs and that restricting supply drives up prices.
