America as Texas vs. California « The Enterprise Blog
I wrote an article for New Geography related to the second point last spring. The role played by housing regulations in the housing bubble is one of the most under-reported and under-analyzed factors contributing to the 2008 financial crisis, and nowhere was its destructive force more evident than in California. Regulators lathered on rule after rule to construction requirements, escalating costs so dramatically that lenders had to design “exotic” mortgages so even relatively affluent people could afford homes. One of Texas’s attractions, meanwhile, was the opportunity of much more affordable homeownership.
This is actually the first of a series of posts on the theme of contrasts between Texas and California.