Economy
NIMBYism Is a Huge Drag on America's Economic Growth
Housing-supply constraints in three cities—New York, San Francisco, and San Jose—add up to a loss of more than 10 percent of U.S. GDP.
Silicon Valley enjoys sky-high labor demand and soaring wages. Yet for such a significant global nexus of economic activity, the population density in San Jose and San Francisco is incredibly low. Incumbent homeowners don’t want to share the wealth, so they enact housing policies that keep new workers out.
Protectionist housing policies are bad for people who’d like to work in Silicon Valley, of course. But NIMBYism is also bad for the nation as a whole. Even though labor productivity has grown the most over the last few decades in three specific U.S. cities—New York, San Francisco, and San Jose—that local growth hasn’t translated to greater national growth at all, thanks to a lack of housing.