LA residents vote to blow bigger housing bubbles

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By Leith van Onselen

For years I have argued that markets where land supply is unresponsive (inelastic) – via planning constraints or geographical barriers – are far more prone to suffer from more expensive housing, higher house price volatility, and bigger boom and bust cycles than markets where land supply is relatively responsive (elastic) to changes in price.

These dynamics were explained in detail in my 2013 presentation to a mortgage risk roundtable in Melbourne (available for download here).

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.