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I agree with the rough principle. I disagree that post-market intervention is created to restrict housing supply. It's a byproduct of other concerns.@panamaican, another way to look at this is that I think that if we're going to deviate from a free-market situation, we should have a good reason and be aware of the tradeoffs. If you agree with that general, rough principle, what's the reason for post-market intervention to restrict housing supply, especially when there is every indication that there is a huge shortage of housing supply?
However one argument for managing housing supply is that the cost of providing municipal services on a per capita basis. Population increases put greater demands on schools, roads, trash, etc. If the municipality cannot afford to provide those services to more people then they shouldn't be looking to exponentially increase their housing supply without ensuring an adequate increase in tax revenue.
We've seen this in many municipalities that ultimately stopped providing certain services or shrunk the services or required residents to contract privately for the services.