To varying degrees, most municipalities regulate urban development with zoning, density restrictions, and parking requirements. Such policies restrict the housing supply and urban density relative to what it could be in a free market. In this paper, we review the literature that measures the price effects of a variety of land-use regulations. Most of these studies find that both traditional land-use policies and newer policies, such as smart growth and inclusionary zoning, increase the cost of housing. And because housing takes up a larger share of the budgets of lower-income households relative to higher-income households, these policies are regressive—a disproportionate share of their costs falls on the relatively poor.
Document Download | Download |
Document Type | General |
Publish Date | 19/11/2015 |
Author | |
Published By | Mercatus Center at George Mason University |
Edited By | Suneela Farooqi |