The Impact of Zoning on Housing Affordability

37 Pages Posted: 28 Feb 2002  

Edward L. Glaeser

Harvard University - John F. Kennedy School of Government, Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

Joseph Gyourko

University of Pennsylvania - Real Estate Department; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: March 2002

Abstract

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.

Suggested Citation

Glaeser, Edward L. and Gyourko, Joseph, The Impact of Zoning on Housing Affordability (March 2002). Harvard Institute of Economic Research Paper No. 1948. Available at SSRN: https://ssrn.com/abstract=302388 or http://dx.doi.org/10.2139/ssrn.302388

Edward L. Glaeser (Contact Author)

Harvard University - John F. Kennedy School of Government, Department of Economics ( email )

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Joseph E. Gyourko

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