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The Foundation for Economic Education recently put a bright spotlight on something simple and stubborn: bad rules made houses scarce. Their video argues that zoning caps, strict building rules, and a panic about population growth in the 1960s and 70s helped choke off supply. That history matters now because too many politicians want to reach for fresh regulations instead of fixing the ones that caused the mess.
How bad rules made housing scarce
Look, the story isn’t just that more people want homes. It’s that whole towns put up fences made of rules. Back when neo‑Malthusian worries about “too many people” were popular, local leaders capped growth, limited permits, and froze new construction to preserve a past they liked. Those choices meant fewer houses got built even as demand climbed. The result? Higher prices, crowded bidding, and younger families shut out. Blaming everything but policy won’t change that.
Price signals, not paper permits, fix shortages
Markets send clear signals: higher prices tell builders there’s profit in building. When you block that signal with zoning red tape, you stop construction cold. Developers don’t build because they like paperwork; they build when the rules let them. If conservatives want to help Americans buy homes, the answer is to remove the barriers — loosen zoning, speed permits, and stop treating every yard as sacred. Let the market work; it usually does a better job than a stack of ordinances.
Blame government, not business — and act
Practical steps conservatives should push
Some people find it easier to demonize corporate buyers or migrants than to admit local rules are the problem. That’s politics, not policy. Conservatives should be bolder: champion state and local reforms that allow gentle density, back faster approval for new homes, cut needless fees, and protect property owners’ rights to build on their land. This isn’t radical — it’s Reaganism applied to the 21st century: trust people, cut red tape, and let supply meet demand. If you prefer slogans to solutions, expect more expensive rents.
Conclusion: Stop adding rules, start building
The housing crisis has many causes, but we can’t solve it by repeating the same mistake: the impulse to control everything. Conservatives who want real results should stop blaming business and start fighting the rules that make building hard. Tear down the permit barriers, reform zoning, and let Americans get to work building homes. In the end, trusting people to adapt beats trusting more government every time.
