Skip to content
Subscriber Only
Opinion
Jonathan J Miller

Costly City Housing Is an Economic Drag

Expensive and rising urban housing cost do more harm than good.
Pretty and quaint, not great for the economy.

Pretty and quaint, not great for the economy.

Photographer: Craig Warga/Bloomberg

It's tough living in a big city -- the people, the traffic, the noise. Oh, and did we mention the cost of housing? 

Contrary to conventional wisdom, high and rising housing costs in the U.S.'s biggest cities are not ideal for an economic recovery. Just the opposite: When housing costs take a big bite out of incomes, it diverts money that could be spent on local goods and services or invested in new businesses that stimulate growth.