Skip to main content
?WHY IS
RENT HIGH?
Why rent is highSolutionsEvidenceChartsLibrary
Take action
HomeWhy rent is highSolutionsEvidenceChartsLibraryTake action
  1. Charts
  2. A structural model finds large gains from easing California's housing constraints.
?WHY IS
RENT HIGH?
The national cost of constraints

A structural model finds large gains from easing California's housing constraints.

The counterfactual shifts employment toward California and raises modeled national output growth.

REDRAWN FROM STUDY DATAFigure 4 · Modeled California deregulation
Figure 4 · Modeled California deregulationThe counterfactual shifts employment toward California and raises modeled national output growth. Values digitized from Figure 4 in the archived publication; minor reading error is possible.0%5%10%15%Change from baseline (%)Modeled outcomeRegulation reset to 2000Regulation reset to 1980California e…Rest-of-U.S.…National out…
Figure 4 · Modeled California deregulation. Values digitized from Figure 4 in the archived publication; minor reading error is possible.
Modeled outcomeRegulation reset to 2000Regulation reset to 1980
California employment share5.114.1
Rest-of-U.S. employment share-0.6-1.8
National output growth4.211.3

Source: Herkenhoff, Ohanian & Prescott (2018) · Figure 4; PDF p. 31

Data: Values digitized from Figure 4 in the archived publication; minor reading error is possible.

Keep in mind: This is a structural-model counterfactual, not an observed reform; magnitudes depend on the model and regulatory calibration.

Share the evidence

A structural model finds large gains from easing California's housing constraints.

The counterfactual shifts employment toward California and raises modeled national output growth.

Source
Herkenhoff, Ohanian & Prescott (2018)
Figure
Figure 4 · Modeled California deregulation · Figure 4; PDF p. 31
Redraw data
Values digitized from Figure 4 in the archived publication; minor reading error is possible.
Keep in mind
This is a structural-model counterfactual, not an observed reform; magnitudes depend on the model and regulatory calibration.
View values used in redraw
Values used to redraw Figure 4 · Modeled California deregulation
Modeled outcomeRegulation reset to 2000Regulation reset to 1980
California employment share5.114.1
Rest-of-U.S. employment share-0.6-1.8
National output growth4.211.3
Download PNGRead study notesBrowse all charts →
?WHY IS
RENT HIGH?

Too many people are chasing too few homes. See why—and what communities can do about it.

HomeWhy rent is highSolutionsEvidenceChartsResearch libraryCommon questionsTake action