yes the criticism does get at some of the most significant issues of UGBs and other growth management systems, but to what extent can we really call them problems? Might it be that increases in housing costs reflect the value to consumers of the amenities created or disamenities prevented by growth management (as suggested by William A. Fischel in his report 'Do Growth Controls Matter?' from the Lincoln Institute of Land Policy)?
Well yes, it is a problem. Fischel's arguments work best at the local level, assuming the Tiebout scenario where other municipalities will deliver another set of goods, so that people who do not want (or cannot afford) the benefits of the more exclusive jurisdiction can go to another one, and there is no net negative impact. Sometimes I think Fischel forgets there are poor, hell middle class, people. Fortunately for Portland, if you don't want to pay the price for those amenities (which don't appeal to everyone btw), you can move to Vancouver across the river, which thanks to Portland's policy, is sprawling more than ever.
When an entire region begins acting exclusively, whether through a UGB, or through exclusive practices across many municipalities (the classic case), providing "amenities" as Fischel puts it, people can be excluded, and labor costs can be impacted. Really what's the difference between the impact of a UGB and snob zoning (and the intention)? This is not a prety picture for the economy or social equity.
I dont have a fundamental problem with UGBs, so long as they are tempered by a policy that channels growth elsewhere. In Oregon only the property rights movement has made that state recognize the error of its ways, with voter-passed referenda putting a stop to the over-reduction of property values by government intervention.
And about Portland, I don't get it. It's nice, it's pretty, it has hipsters (aka sterile). By the numbers anyway, it's not even that dense. The city has a density of 4,300 per sq mile, and the densest census tracts are around 25,000. Evil Los Angeles, by contrast, has a density of 8,200 per square mile, and the densest census tracts approach 95,000 per square mile. In fact Portland is more comparable to Atlanta, with a population density of 4,000 per square mile, although even there the densest census tracts reach 40,000.