So what would this entail? The quote is a little opaque. Trying to parse it out, I understand it as saying local government policies on zoning for housing and approving permits for new housing is artificially limiting supply. Applying basic economic principles this drives an increase in price for housing allowing “ homeowners to capture super-normal returns on their investments.”
But then what does that have to do with income inequality? Does the type of house I can afford, or that fact that I can even afford a home, affect my ability to gain an income or to increase it? I believe there is evidence to suggest yes, but the research I am familiar with ties it to where you were born or grew up. What effect does increased housing prices have on me as a young professional or a newly graduated college student? The article does a poor job of explaining that. I hope the research it is reporting on does a better job.