Land-use regulations, including height limits, affect housing affordability and urban productivity. This column analyses over 11,000 urban agglomerations and 300,000 tall buildings to explore the effect of height restrictions on welfare. Vertical growth enhances land efficiency, reduces commuting, and boosts worker welfare. While higher density can increase housing demand and rents, the associated gains more than offset the costs. The debate about housing supply should not focus only on horizontal expansion. Allowing cities to build upward may be just as important for accommodating urban growth, improving access to opportunity, and preserving valuable land.

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19 March 2026

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Vox EU

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https://cepr.org/voxeu/columns/tall-buildings-lead-more-compact-and-productive-cities

This Blog is published under the centre's Urban programme.