Boom is back, but must be responsible - Bozeman Chronicle editorial

Reproduced here for fair use and discussion purposes. My comments in bold.

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Ever the socialists, the Chronicle editorial board wants this resurgent prosperity in Bozeman real estate to be carefully managed by government. Apparently, growth is a good thing, but the wrong kind in the wrong way is bad. And of course, the City has demonstrated competence in managing economic issues in the past, so they are the natural choice to bring even more of their stellar skills to bear on the economic practices of private individuals. Yeah, right.

Read on:

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Word that the city set a one day record for building permit applications recently signals the housing boom of pre-recession days may be making a comeback. That should translate into good news for the economy: the return of high-paying construction jobs, rising home prices, opportunities for developers and real estate agents.

But it also calls for vigilance on the part of local government leaders when they are confronted with the big development proposals that are likely on the way in the coming months and years.

Caution should be the word of the day.

The pre-recession building boom consumed more and more open space in and around Bozeman, spawning our own unique version of Montana urban sprawl. (Left unsaid here is that the previous boom was heavily regulated by the City. Subdivisions were slow to be approved, and onerous requirements were attached to those approvals, like lot size, paving requirements, open space set asides, and affordable housing allocations. As a result, many people were choosing to move outside the reach of the City, which resulted in what the Chronicle calls "sprawl." Apparently entirely lacking in self awareness, the editorialists ironically call for exactly the same policies which created what they now complain about.) 

As elected leaders guide another wave of development, they should encourage growth upward rather than outward.

In more rural areas, county officials have unique challenges. Continuing to approve housing developments where each home has its own well is not acceptable. Planners need to encourage more community water systems. And lawmakers have to amend state law that grants automatic water rights to every home. We know now that aquifers are limited and being depleted at an alarming rate.

Southwest Montana largely avoided the housing collapse seen around the rest of the nation during the Great Recession. Montana bankers were more conservative in their lending practices and — as a result — found themselves with fewer foreclosures on their hands. (Hmm. Why might that be? Were Montana banks able to be more conservative by not lending to people who couldn't afford to buy a home? Does the prices of homes here as compared to, say, California make any difference? Isn't interesting that the Chronicle identifies prudent lending practices as a benefit, while others consider it redlining? Why were big banks elsewhere forced to lend to people who did not qualify? And has there been any federal legislation that impacted how, when, and to whom a bank could make a loan?)

That wisdom should continue to prevail as another round of home flipping could be on the horizon. (Yes, let's have more of the same failed policies.)

A booming housing market can be a great thing. A return to rapid population growth sets the stage for a lot of people to make a lot of money. And climbing home values will enhance the wealth of existing homeowners. But not all growth is a good thing.

State and local elected leaders should not hinder growth. They should process the right kinds of development plans quickly and efficiently. But growth must also be managed smartly with an eye toward preserving the quality of life we all enjoy. (They should not hinder growth, but they should continue to hinder growth. Yes, of course.)