Planning Penalties in North Carolina: Why Other N.C. Cities Shouldn't Follow Asheville and Wilmington

Description:

Since the late 1980s, housing prices in North Carolina have increased rapidly in some cities while in others prices have grown more slowly. Asheville and Wilmington for example, are known for large increases in their housing prices over the last 15 years, while in Fayetteville and Hickory housing prices have grown much more slowly. Why is this? A new study by economist Randal O’Toole published by the American Dream Coalition demonstrates that the key difference is restrictive land use policies imposed by local governments. Cities that have established aggressive growth management plans or so-called smart growth plans, not just in North Carolina but around the country, have artificially created housing shortages which in turn drive up prices. O’Toole’s research shows this for cities nationally and in North Carolina. This report highlights O’Toole’s research and explains why housing prices in North Carolina have increased in some areas and not in others. It also explains what North Carolina cities must do to keep housing prices affordable for North Carolina’s moderate and low-income citizens.