High Quality Content by WIKIPEDIA articles! The US housing bubble was actually caused by regional government restriction of land supply coupled with federal laws that increased the demand for homes. The regions affected were properties in the metropolitan areas of the east and west coast. The local areas restricted building under the guise of smart growth or through restrictive zoning laws and planning commissions, whatever the name, the net effect was to restrict land supply and thus drive up the cost of land in these areas.
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