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Restrictive zoning in Phoenix? Las Vegas?

What am I missing here? Below is an excerpt from Krugman's column. He talks about the lending and banking disaster in Georgia and reprises his "flatland" theory that says the real estate bubble/crash was worst in places with strong zoning restrictions, which limited supply, drove up prices etc. etc. etc. But the examples of real estate catastrophe that he lays out -- Florida, Nevada and Arizona -- are famous for their lack of zoning curbs. They're not Texas, but they sure ain't Portland, Oregon, either. "Phoenix"? "Zoning restrictions"? "Limited the construction of houses"?

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