Better Cities Project
  • Home
  • About Us
    Our Vision
    BCP’s vision is that free-market municipal policy solutions are broadly available, widely acceptable, and regularly employed, enabling American cities to achieve their full potential as engines of economic prosperity. We reject the idea that cities are lost to free-market principles or policies.
    Our Mission
    BCP uncovers ideas that work, promotes realistic solutions, and forges partnerships that help people in America’s largest cities live free and happy lives.
    Learn More
    • About Better Cities Project
    • Our Focus Areas
    • Our Team
    • Collaboration and Careers -- Work With BCP
  • Research and Projects
  • Latest Insights
  • Videos
  • Contact

    Address

    304 S. Jones Blvd #2826
    Las Vegas NV 89107

    Phone

    (702) 608-2046‬

    Hours

    Monday through Friday, 8 a.m. - 5 p.m.

    Email

    info@better-cities.org

No Result
View All Result
Better Cities Project
  • Home
  • About Us
    Our Vision
    BCP’s vision is that free-market municipal policy solutions are broadly available, widely acceptable, and regularly employed, enabling American cities to achieve their full potential as engines of economic prosperity. We reject the idea that cities are lost to free-market principles or policies.
    Our Mission
    BCP uncovers ideas that work, promotes realistic solutions, and forges partnerships that help people in America’s largest cities live free and happy lives.
    Learn More
    • About Better Cities Project
    • Our Focus Areas
    • Our Team
    • Collaboration and Careers -- Work With BCP
  • Research and Projects
  • Latest Insights
  • Videos
  • Contact

    Address

    304 S. Jones Blvd #2826
    Las Vegas NV 89107

    Phone

    (702) 608-2046‬

    Hours

    Monday through Friday, 8 a.m. - 5 p.m.

    Email

    info@better-cities.org

No Result
View All Result
Better Cities Project
No Result
View All Result
Home Community, Growth and Housing

Why housing efficiency isn’t making homes affordable

Economies of scale work in many industries, but in housing, they often fuel speculation instead of affordability

Patrick TuoheybyPatrick Tuohey
March 11, 2025
in Community, Growth and Housing
Reading Time: 2 mins read
A A
Why housing efficiency isn’t making homes affordable
Share on FacebookShare on TwitterLinkedInEmail
In a recent article on Strong Towns, Charles Marohn challenges the notion that increased efficiency and economies of scale in housing production lead to greater affordability. Marohn argues that, unlike industries such as electronics where efficiency drives down prices, the housing market resembles sectors like healthcare and higher education, where additional liquidity often results in higher costs.

Marohn references the post-World War II era as a period when efficiency did contribute to affordability in housing. During that time, federal programs like the GI Bill and the establishment of entities such as Fannie Mae and the FHA expanded mortgage access, leading to a surge in home construction. This expansion facilitated large-scale production methods, reducing costs per unit and making homeownership more attainable.

However, Marohn contends that the contemporary housing market operates differently. He suggests that increased liquidity now often fuels speculation, consolidates market power, and creates financial instability, resulting in higher housing costs rather than improved affordability.

RelatedInsights

How Proposition 13 broke California

How cities can make manufactured housing safer

Cities may get more bang for their buck by attracting workers, not companies

After Grants Pass: what San Francisco’s stricter encampment enforcement means for city leaders

This perspective aligns with observations from other analysts. For instance, George Monbiot, writing for The Guardian, critiques the reliance on volume housebuilders who limit construction to maintain high prices, thereby minimizing affordable housing availability.

While efficiency and economies of scale once played a significant role in making housing more affordable, Marohn and others argue that the current dynamics of the housing market require a reevaluation of this approach. Addressing affordability today may necessitate confronting issues like financialization, speculative investment, and the consolidation of market power.

Tags: EconomicsFiscal PolicyHousing Affordability
Previous Post

Parking mandates drive up housing costs—repeal them

Next Post

Faith-based housing is filling the gaps where cities have failed

Patrick Tuohey

Patrick Tuohey

Patrick Tuohey is co-founder and policy director of the Better Cities Project. He works with taxpayers, media, and policymakers to foster understanding of the consequences — sometimes unintended — of policies such as economic development, taxation, education, and transportation. He also serves as a senior fellow at Missouri's Show-Me Institute and a visiting fellow at the Virginia-based Yorktown Foundation for Public Policy.

Explore More

  • Economic Prosperity
  • Criminal Justice and Public Safety
  • Transportation and Infrastructure
  • Education
  • Energy and Environment
  • Community, Growth and Housing
  • Clean, Open and Fair Government

Recent News

How Proposition 13 broke California

How Proposition 13 broke California

August 25, 2025
How cities can make manufactured housing safer

How cities can make manufactured housing safer

August 22, 2025
Cities may get more bang for their buck by attracting workers, not companies

Cities may get more bang for their buck by attracting workers, not companies

August 20, 2025
After Grants Pass: what San Francisco’s stricter encampment enforcement means for city leaders

After Grants Pass: what San Francisco’s stricter encampment enforcement means for city leaders

August 18, 2025
Load More
Facebook Twitter RSS
Better Cities Project

Better Cities Project helps people in America’s largest cities live free, happy lives. We uncover what works, promote solutions, and forge partnerships that turn ideas into results.



© 2023 Better Cities Project

Thanks to QuestionPro for providing us over 35 question types to choose from. The advanced question types help up collect deep insights.

Our Focus Areas

  • Economic Prosperity
  • Criminal Justice and Public Safety
  • Transportation and Infrastructure
  • Education
  • Energy and Environment
  • Community, Growth and Housing
  • Clean, Open and Fair Government

The Fine Print

  • Privacy Policy
  • Terms and Conditions
  • Reports and Financials

Recent News

How Proposition 13 broke California

How Proposition 13 broke California

August 25, 2025
How cities can make manufactured housing safer

How cities can make manufactured housing safer

August 22, 2025
Cities may get more bang for their buck by attracting workers, not companies

Cities may get more bang for their buck by attracting workers, not companies

August 20, 2025

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Love Cities? So Do We.

Get ahead of the curve -- learn about innovations, ideas and policies driving change in America's largest cities, with BCP in your inbox.



You have Successfully Subscribed!

No Result
View All Result
  • About Us
  • The Team
  • Work With Better Cities Project
  • Research and Projects
  • Latest Insights
  • Videos

© 2023 Better Cities Project