What an utterly disingenuous claim-the notion that these alleged zoning requirements "were initiated by lenders/municipalities, in an attempt to force Americans to build bigger homes, thus incurring larger debt (so lenders could make more$) and municipalities could charge higher taxes."
That certainly is a benefit to them in some cases (Diablo 3 Gold), but no mention whatsoever is made of the fact that developers (many of whom are politicians or cozy with them) benefit too, as well as trade and other unions that can use their clout to ramp up costs, work kickback deals, etc.
But even more important is the fact that size and occupancy codes have a lot to do with things like parking availability, sewer and water infrastructure limits, safety egress requirements (unobstructed hallways and walls that can handle egress sized windows take space), ADA requirements that define minimum door and passage sizes....the list goes on and on (Diablo 3 Gold).
Fact is that there are under 1000 sq' residences all over the US, and the reason most places aren't building more is because
a) there's already more than enough residential units to supply any demand, called apartments and condos
b)there's already more than enough residential units to supply any demand for small houses in the form of cottages and similar small houses from the early-mid 20th century- like the 400 sq' house I lived in built in 1913, one of hundreds of similarly small houses standing in that San Diego neighborhood alone.
c) because lots and permits are so expensive that it makes no sense to build a tiny house at that expense
d) because to actually make any difference to the overall amount of smaller units available you have to increase population density and that causes all kinds of havoc to everything from roads to schools to postal service to trash service to pest control to crime statistics, and none of that stuff is made better by packing more people into the same space (Diablo 3 Gold).
Don't forget that those neighborhoods built in the early 20th century often still have streets and off street parking designed for the cars of that day, that can't even handle modern cars passing each other going opposite directions, let alone three or four times as many houses full of people driving and parking on them.
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