People charged higher interest rates than average also have higher rates of payments, defaults and foreclosures. The market has accurately assessed the risks. (Pg. 6)
From Pg. 16-17: While housing payments often made up more than half of income in Los Angeles and New York, the percentage of median income required to buy a house in Tampa was 21% and in Dallas 13%. These latter two places had few buildings restrictions.
The more the government intervenes in the housing market, the more expensive the housing.