Zoning's Steep Price

Posted: 10 Feb 2003

See all articles by Edward L. Glaeser

Edward L. Glaeser

Harvard University - 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)

Abstract

A chorus of voices appears to proclaim unanimously that America is in the midst of an affordable housing crisis. But an examination of housing price data from across the country reveals that, in most areas of the country, home prices appear to be fairly close to the physical costs of construction. Only in particular areas, especially New York City and California, do housing prices diverge substantially from the costs of new construction. The bulk of the evidence that we marshal suggests that zoning and other land use controls are heavily responsible for high prices where we see them; measures of zoning strictness are highly correlated with high prices.

Keywords: Zoning, Housing

Suggested Citation

Glaeser, Edward L. and Gyourko, Joseph E., Zoning's Steep Price. Available at SSRN: https://ssrn.com/abstract=343603

Edward L. Glaeser (Contact Author)

Harvard University - Department of Economics ( email )

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Joseph E. Gyourko

University of Pennsylvania - Real Estate Department ( email )

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