Tokyo has a laissez-faire approach to land use that allows lots of building subject to only a few general regulations set nationally. Robin Harding at the FT has a very important piece on the Tokyo system.
Tokyo's liberal zoning policies increase the supply of housing which reduces prices and inequality by helping would be homebuyers and renters.
HT: Marginal Revolution
I would wager that it's due less to laissez-faire regulation and more to the fact that the Japanese turn over their housing stock much more quickly than America (half of Japanese homes are demolished after 38 years, vs 100 years in the US)
ReplyDeletehttp://freakonomics.com/podcast/why-are-japanese-homes-disposable-a-new-freakonomics-radio-podcast-3/
When there's a large supply of those unwanted "old" 38 year old homes relative to demand, it's easier to find affordable housing.