Dueling zoning regulations don't work

The subprime mortgage situation should sharpen our focus on issues related to housing and home ownership.

Much of the recent coverage relates to lax conditions under which lenders wrote many subprime mortgages and how that problem has been compounded by a flat housing market.

However, running ahead of this damaging combination were extraordinarily high housing prices in many parts of the country. Many individuals applied for, and received, subprime mortgages who otherwise might not have purchased a home.

In many cases, the high price of homes left buying out of reach for those in lower income brackets, which raised the issue of "affordable" housing and prompted "inclusionary zoning." This requires new developments or redevelopments to set aside a certain percent of the development for low-income earners.

But before we feel triumphant that zoning serves as the salvation for low-income earners seeking a home, we need to look at what leads to high-priced housing. And guess what? It turns out that zoning is one of the factors.

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