Zoning and “malinvestment”

Source: EconLog
by Scott Sumner

“A few days ago, I visited downtown Long Beach. The city of Long Beach is located in LA County, right on the Pacific. It has a population is 456,000 and is fairly expensive. The city should be booming, but instead it seemed sort of depressed. What went wrong? I saw one fairly new high-rise residential building, but mostly it was just block after block of older low rise commercial and residential buildings, with very little construction underway. There are a few homeless people walking around, although not so many as in LA. Given the high rents and housing prices in coastal California, why isn’t Long Beach experiencing a boom in redevelopment? I suspect the problem is regulations.” (01/22/23)