Accession Number:

ADA621277

Title:

The Effect of Zoning Laws on Housing Prices and BAH Rates

Descriptive Note:

MBA professional rept.

Corporate Author:

NAVAL POSTGRADUATE SCHOOL MONTEREY CA GRADUATE SCHOOL OF BUSINESS AND PUBLIC POLICY

Personal Author(s):

Report Date:

2014-12-01

Pagination or Media Count:

63.0

Abstract:

This thesis is an analysis of the effect of zoning laws and regulations on the price of residential housing. Economists Edward Glaeser and Joseph Gyourko have completed significant work on this topic. Their efforts have focused on the correlation of high housing prices with zoning laws and other land-use controls, but stop short of estimating the impact of zoning laws on actual housing prices in specific markets. This thesis expands on their research and estimates what residential housing prices would be without the regulations. It also estimates the deadweight loss DWL caused by the zoning laws in various high-cost markets. The results show significant price reductions from both complete and partial elimination of zoning restrictions. This thesis also uses these estimates to calculate the impact of the zoning laws on Basic Allowance for Housing BAH in the markets analyzed. Estimated BAH rates with zoning reduced or eliminated were substantially lower in many of the high-cost housing markets studied.

Subject Categories:

  • Economics and Cost Analysis
  • Sociology and Law

Distribution Statement:

APPROVED FOR PUBLIC RELEASE