Policies to combat sprawl penalize minorities, the poor, urban
families and the young, says a new econometrics report being
released at a November 21 Washington policy conference by the
Center for Environmental Justice of The National Center for Public
Policy Research. Moreover, such policies do not generate the
expected environmental benefits.

The study, "Smart Growth
and Its Effects on Housing Markets: The New Segregation,"
used as a baseline the "smart growth" policies of Portland,
Oregon, considered by many the nation's best, and asked: if cities
nationwide had adopted these policies ten years ago, how would
America's most disadvantaged populations been affected?

The study also examines the
impact of sprawl restrictions on commuting times, congestion,
the need for new infrastructure and the preservation of "green"
space.

The study concludes that
"smart growth" hurts the underclass at disproportionately
high rates.

If Portland-style policies
had been adopted nationally ten years ago:

1) 260,000 minority homeowners
would not own their own homes today;

2) one million homeowners of
all races would not own their own homes today;

3) the average home price would
have increased by $10,000 in 2002 dollars;

4) the average cost of renting
a home or apartment would have increased six percent.

Sprawl restrictions did
not achieve their environmental objectives, actually increasing
suburbanization rates while failing to reduce vehicle miles traveled
or congestion.

"Restricted growth policies
can be dubbed 'the new segregation,' as they deter minorities
from the housing market at disproportionate rates," said
Amy Ridenour, president of The National Center for Public Policy
Research. "Homeownership is key to realizing the American
Dream and equity in a home is a widespread as a way for the working
and middle classes to amass wealth and build a retirement nest
egg. We have government polices that promote homeownership. It
is ironic that other government policies are working against
it."

The study was completed by
QuantEcon for the Center for Environmental Justice of The National
Center for Public Policy Research, a non-profit, non-partisan
Capitol Hill think-tank established in 1982. No corporate or
housing industry funds were used to finance the study.