Hierarchical Zoning, Incompatible Uses and Price Discounts

REAL ESTATE ECONOMICS, Vol. 25 No. 3, Fall 1997

Posted: 18 Jul 1997

See all articles by Paul K. Asabere

Paul K. Asabere

Temple University - Department of Finance

Forrest E. Huffman

Temple University - Department of Finance

Abstract

This study examines an aspect of hierarchical zoning.Hierarchical zoning, unlike mutually exclusive zoning, isuni-directional in that it protects upper-level residentialuses from nonconforming, non-residential uses but not viceversa. The result is that the lower-level zones can be amixture of several nonconforming, incompatible uses. Thisunique attribute of hierarchical zoning offers a window ofopportunity for choices for affordable housing at affordablelocations. Using hedonic analysis, empirical evidence showsthat huge price discounts (over 15%) are associated withapartments that are situated in nonconforming zones.Arguments here support of more flexible zoning.

JEL Classification: R0

Suggested Citation

Asabere, Paul K. and Huffman, Forrest E., Hierarchical Zoning, Incompatible Uses and Price Discounts. REAL ESTATE ECONOMICS, Vol. 25 No. 3, Fall 1997. Available at SSRN: https://ssrn.com/abstract=9303

Paul K. Asabere (Contact Author)

Temple University - Department of Finance ( email )

Fox School of Business and Management
206F Speakman Hall
Philadelphia, PA 19122
United States
(215) 204-1678 (Phone)
(215) 204-1697 (Fax)

HOME PAGE: http://www.sbm.temple.edu/~pasabere/

Forrest E. Huffman

Temple University - Department of Finance ( email )

Fox School of Business and Management
Alter Hall 401
Philadelphia, PA 19122
United States
(215) 204-6675 (Phone)

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