Why Houston and San Francisco Don’t Have The Same Housing Problems

April 24, 2015

Several of the country’s top housing officials and economists say the lack of affordable housing is a crippling concern in the U.S.

According to Zillow Chief Economist Stan Humphries, local regulations are at the root of the supply problem. When fixed costs go up, builders have an incentive to create more expensive housing.

It's no surprise then that heavily regulated cities like San Francisco have more of a supply crisis compared to places like Houston.