Opponents of growth management often cite cases where housing costs have risen. But denser development as a result of growth boundaries lowers public infrastructure costs and private transportation costs. Less is spent on second cars, gasoline, maintenance and auto insurance. Lower transportation costs, coupled with lower local taxes to support infrastructure and the income tax deductibility of mortgage interest and property, may make a higher priced house a very affordable bargain. Affordability is a matter of income relative to the total cost of living.
Housing is one of many factors.
The second myth is that economic growth raises incomes and helps housing become more affordable for everyone. A rising tide doesn t always lift all boats. There was some narrowing of the gap in the late 1990 s, but not enough to reverse the last twenty-five years. With sharply rising incomes only at the top, high-end homes are so profitable for builders that it is difficult to entice them to build basic housing where profit margins are low. That s just simple economics.