Interesting article Leigh. I was especially fascinated by the graphics video. I had a little trouble following them at first but I think this was because I am color blind.

The premise that high housing prices are the result of public policies that discourage new development rang true for me.

My brother bought a house in the San Diego area several years ago. For some reason San Diego had, for many years kept a very tight rein on the release of new building permits. This had driven prices up to a level much higher than in other areas of the country. My brother paid close to a half million dollars for a home that here in Lubbock Texas would have cost less than a hundred thousand. 

When the city opened up and allowed builders to build again a few years later, everyone in who had bought during the period of artificially high housing prices saw their home values drop far below what they owed on their homes. It was very similar to what we have seen on a national level in the last four years.

I believe it is always a mistake for government whether, local or national, to try to artificially manipulate the free market.