Regulation and Housing Prices, Housing Prices and Wages
There have been a couple of recent studies that show how much regulation has driven up housing prices in the Seattle area as well as a study I just read showing how high housing prices have impacted the entire economy in Boston. Wages have been driven down and wild housing price fluctuations have been a result of regulation of the housing supply in Boston.
Elizabeth Rhodes wrote a story based for the Seattle Times based on a study done by Theo Eicher, Economics Professor at the UW. The Boston study was done by Edward Glaeser, Rappaport Institute for Greater Boston, Harvard University which I read 
through the RealEstateBloggers you can find in the links section of this site. Both the Seattle Times and the Wenatchee World have had editorials on the topic, with differing opinions.
Boston has had regulation and high prices for a much longer period than Seattle. Boston has also gotten to the point where corporations are no longer moving there and, in fact, are moving out due to high costs to operate, including housing for their workers.
Boston is actually seeing declines in their population due to the high cost of housing. Secondly, the high cost of housing is causing higher volatility in housing prices, an effect Seattle has not yet seen. Third, high prices associated with short supplies of housing appear to lead to declines in both employment and income. The fourth major point is that high housing prices change an area’s demographic mix.
In Boston, these factors are contributing to the housing bubble. In Seattle, we seem to have escaped that outcome for now.
For real estate professionals, investors, or folks who just own real estate these articles and studies are well worth reading. They can give you a glimpse of the impact regulations that we see in Washington could have in the future. It might just help you guide you decisions in the future.
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