Drilling Booms and Housing Shortages: Is the Market Nimble Enough to Replace Government Intervention?

NARDeP Policy Brief (2014)

4 Pages Posted: 11 Mar 2020

See all articles by Michael D. Farren

Michael D. Farren

George Mason University - Mercatus Center

Date Written: June 1, 2014

Abstract

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

Farren, Michael D., Drilling Booms and Housing Shortages: Is the Market Nimble Enough to Replace Government Intervention? (June 1, 2014). NARDeP Policy Brief (2014), Available at SSRN: https://ssrn.com/abstract=3536620 or http://dx.doi.org/10.2139/ssrn.3536620

Michael D. Farren (Contact Author)

George Mason University - Mercatus Center ( email )

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United States

HOME PAGE: http://mercatus.org/michael-farren

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