I have a new essay in City Journal that looks at Daniel Parolek’s Missing Middle Housing — and the case for both land use and financing policies that encourage builders to develop more midsized housing options in growing regions. The bottom line: traditionally, homeowners could develop additional units as neighborhood markets signaled demand through rising prices. As this demand was met, prices would trend toward an equilibrium — with the smaller units being most affordable.

Today, land use policies often prevent or limit these kinds of resourceful adaptations by owners — and subject any proposed changes to the gauntlet of local politics, where those who oppose any change often have a deep advantage. (Note how even the legal concept of ‘spot zoning’ militates against boards allowing incremental change, by deeming it facially illegitimate to change the rules for a single property outside the comprehensive planning process — even though such gradual adaptation in response to opportunities is how cities have historically grown.) One result, in the aggregate, has been a widespread shortage of affordable housing in growing regions.