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Could there be a "tragedy of the commons" effect if restrictions on housing construction were lifted?
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Let's say there's a shortage of housing relative to demand in Venice, Italy (there probably is), so developers tear down a lot of historic buildings to build ugly modern high-rise flats. Suddenly the housing shortage is eased but Venice is no longer what it was and the new buildings are completely out of step with the surroundings.

As well as being a shame in its own right, could this not reduce tourism and spending in Venice which would do more harm than good to the city? And wouldn't this suggest that some building restrictions are economically beneficial?

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5 months ago