Sarah Mikhitnarian, an economic analyst at real estate listings company Zillow, published an analysis the other day comparing regulation on new construction to rent changes using the Wharton Residential Land Use Regulation Index and Zillow’s own data on rentals and home prices.
She found that rents grew three times as fast in restrictively-regulated cities over the last five years. Those same highly regulated cities experienced a drop in homes for sale and apartments to rent. She also found that the more regulated cities had more adults per household than in other cities.
“On average,” she wrote, “rents in the nation’s least restrictive cities rose 6.1 percent over the past five years, while rents in the most restrictive cities rose 16.7 percent.”
Boston, marked as a “more restrictive” city, had an increase in rents of around 40 percent since 2011 while San Francisco saw an increase of 42.4 percent while being…
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Utopia, you are standing in it! 
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