zagzagal

Most communities try and walk a fine line trying to prevent boom and bust cycles.

While creative destruction is a necessary part of free market theory it is beyond scary when it comes to peoples communities. That fear and the reality that some of the losers of the market correction are people that one may know personally are why that true free market is never seen in housing.

While not a federal, or even state issue it is very much a locality issue. One which is unique to a given locality and is well within their rights to legislate.

It's for the same reason right to farm laws exist, no community wants to give up its right of self direction to outsiders. Even if in many ways it's not to benifit of its neighbors.