Since the 1970s, coastal US cities have implemented laws that make it impossible for housing supply to equal demand. Proponents of these laws argue they are important for historic preservation, environment protection, and the livability of cities. Conveniently, such laws also happen to inflate the housing prices of many of their supporters—mainly the old and wealthy, who are the clear winners of these kinds of market-constraining regulations.
A new working paper (pdf) from the economists Edward Glaeser of Harvard University and Joseph Gyourko of the University of Pennsylvania shows exactly how much the winners have gained. The researchers analyzed household survey data from 1983 to 2013 (the last year data was collected), and found that housing wealth increased “almost exclusively among the wealthiest, older Americans.”