RT Journal Article
SR Electronic
T1 Impacts of Water-Related Building Moratoria on California’s Housing Crisis
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 112023-0122R
DO 10.3368/le.101.1.112023-0122R
A1 Shen, Mingzhou
A1 Fisher-Vanden, Karen
A1 Wrenn, Douglas H.
YR 2024
UL http://le.uwpress.org/content/early/2024/09/16/le.101.1.112023-0122R.abstract
AB California is facing a housing affordability crisis, which has been partially blamed on building moratoria enacted to address the state’s severe water shortages. This study uses data on the enactment of moratoria in California from 2010 to 2018 to examine their impact on new housing supply and prices. We find that the short-term impact of the moratoria on housing supply is small, but the effect grows over time and becomes more significant in later years, especially for locally mandated moratoria. We do not, however, find that these supply shocks have had an impact on housing prices.