The Impact of Zoning on Housing Affordability
Edward L. Glaeser
Harvard University - John F. Kennedy School of Government, Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)
University of Pennsylvania - Real Estate Department; National Bureau of Economic Research (NBER)
Harvard Institute of Economic Research Paper No. 1948
Does America face an affordable housing crisis and, if so, why? This paper argues that in much of America the price of housing is quite close to the marginal, physical costs of new construction. The price of housing is significantly higher than construction costs only in a limited number of areas, such as California and some eastern cities. In those areas, we argue that high prices have little to do with conventional models with a free market for land. Instead, our evidence suggests that zoning and other land use controls play the dominant role in making housing expensive.
Number of Pages in PDF File: 37
Date posted: February 28, 2002