high cost of living due to lack of housing

[kalakoa]

I've long suspected that an expensive, inane permit process is really just a way to create an artificial scarcity and thus inflate prices, turns out this is pretty accurate:

http://www.westhawaiitoday.com/news/loca...ed-housing

Quoting HOTPE's instant classic here:

"The imagined needs of the few, outweigh the genuine needs of the many."

[Kapoho Joe]

BS. Can buy an acre for 10K and build a shack. No permits required. I see it all over the place.

[hotinhawaii]

Interesting, kalakoa, I read the same article and did not see any link implied or stated between an expensive permit process and artificial scarcity.

[kalakoa]

It's pretty much spelled out right at the beginning of the article; ironically, there's another new thread right here in these forums about "4-5 months for building permits?"

First, the primary factor driving the high cost of living in the state is the price of housing. Second, the best solution to at least stem that cost is to create more housing inventory.

"Basically, we need to do whatever we can to build more housing," said Carl Bonham, professor of economics and executive director of the the Economic Research Organization at the University of Hawaii. "Even if we do that … we may not bring down the cost of living. On the other hand, if we don't build more housing, the number will get worse."

Bonham added to accomplish this, onerous regulatory burdens to residential development in Hawaii must be lightened, reducing the number of approvals required to build.

"(There is) a very strong correlation between regulatory burden and volatility (of home prices) and overall level of home values," he said.