Drilling Booms and Housing Shortages: Is the Market Nimble Enough to Replace Government Intervention?
NARDeP Policy Brief (2014)
4 Pages Posted: 11 Mar 2020
Date Written: June 1, 2014
During the recent drilling booms in the Marcellus, Bakken, and Fayetteville shale regions media reports of the evictions of low-income households from their rental properties due to rising rents spurred calls for the creation of need-based governmental housing assistance programs. However, further investigations reveal that these regions experienced a substantial increase in housing and hotel construction concurrent with the surge in drilling. The quick response of the housing market combined with a delay in implementation of these programs begs the question whether the problem of housing shortages might be better solved by the private market rather than governmental intervention.
Keywords: unconventional resources, shale, housing, boom, shortage
JEL Classification: Q33, R11, R21, Q35, H42
Suggested Citation: Suggested Citation