Hierarchical Zoning, Incompatible Uses and Price Discounts
REAL ESTATE ECONOMICS, Vol. 25 No. 3, Fall 1997
Posted: 18 Jul 1997
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: Suggested Citation