On the contrary, regulatory change for the 30 years preceding the crisis was largely a deregulatory program, designed at least in part to address the erosion of banks’ franchise value caused by the rapid growth of credit intermediation through capital markets. The consequences of this neglect were dramatic.
Rather, a big part of the increases over time is due to factors affecting demand and capacity to pay, such as increased household access to finance. Supply considerations are more likely to have affected prices on the edges of urban development. These areas, of course, are important for households at the entry level of the housing market. 2.