a b s t r a c tInferences about the determinants of land prices in urban areas are typically based on housing transactions, which combine payments for land and long-lived improvements. In contrast, we investigate directly the determinants of urban land prices within a metropolitan area -the San Francisco Bay Area. Our analysis focuses on the relationship between the regulation of urban development within different jurisdictions and land prices, while considering other factors that shape the value of land, such as topography and access to jobs. We find that cities that require a greater number of independent reviews to obtain a building permit or a zoning change have higher land prices, ceteris paribus. Finally, we relate the variation in land prices to the prices paid for housing in the region and show that local land use regulations are closely linked to the value of houses sold. This is in part because regulations are so pervasive, and also because land values represent such a large fraction of house values in the San Francisco Bay Area.
Problem, research strategy, and findings Income segregation has risen in each of the last four decades in U.S. metropolitan areas, which can have lifelong impacts on the health, economic productivity, and behaviors of residents. Although it is widely assumed that local land use regulations—such as minimum lot sizes and growth controls—exclude low-income households from wealthier neighborhoods, the empirical research is surprisingly limited. We examine the relationship between land use regulation and segregation by income using new measures for the 95 biggest cities in the United States. We find that density restrictions are associated with the segregation of the wealthy and middle income, but not the poor. We also find that more local pressure to regulate land use is linked to higher rates of income segregation, but that more state control is connected to lower-income segregation. Takeaway for practice Density restrictions do drive urban income segregation of the rich, not the poor, but should be addressed because rich enclaves create significant metropolitan problems. Planners at the local level need assistance from regional and state efforts to ameliorate income segregation. Inclusionary housing requirements have a greater potential to reduce income segregation than bringing higher-income households into lower-income parts of the city. Finally, comprehensive and consistent data on the impacts of local land use regulations should be collected to inform future research and planning practice.
a b s t r a c tStandard urban economic theory suggests that stringent urban land-use regulation leads to higher housing prices due to both direct impacts on costs and a reduction in the price elasticity of supply. Indonesia has one of the most restrictive land registration and construction permitting systems in Asia, yet housing is affordable, rates of household formation are high, and housing supply is relatively elastic. This paper explores the relationship between land use regulations and housing markets in Indonesia through various analyses; an overview of 90 cities, a direct assessment of the relationship in 15 cities, and detailed case studies of two medium-sized cities. Regulations do impact the production of housing in Indonesia, but they do not affect housing markets in the predicted way because of their flexible enforcement and a widespread and dynamic informal housing-production system. The main impact of the strict landuse regulations in Indonesia is thus argued to be under investment in physical infrastructure related to housing; a substantial detriment to urban development and economic growth. The case of Indonesia demonstrates the importance of regulatory enforcement and local context in the analysis of land use regulations.
Changing patterns of urban growth in Latin America have drawn scholars' attention to new forms of socioeconomic segregation. In Mexico, changes in urban development are different from, and perhaps more significant than, elsewhere in the region as they stem principally from the reform and expansion of the country's provident‐fund‐dominated housing finance system. This article examines the impact of the expansion of housing finance on socioeconomic segregation with a series of econometric models, using a unique combination of data on over 100 Mexican cities. Findings show that growth in segregation during the 1990s is strongly associated with the share of new housing purchased under the financing system, as is the change in the share of socioeconomic segregation conditional on the distribution of housing stock. The results highlight a previously unrecognized secondary impact of the new policy, and illustrate the importance of the structure of the housing finance system in the way cities are built and where people live within them. Résumé Les modèles de croissance urbaine en Amérique latine ont évolué, attirant l'attention des chercheurs sur de nouvelles formes de ségrégation socio‐économique. Au Mexique, les changements que présente le développement urbain sont spécifiques, et peut‐être plus significatifs qu'ailleurs, car ils découlent principalement de la réforme et de l'essor du système national de financement des logements dominé par les fonds de prévoyance. Pour examiner comment la progression de ce financement affecte la ségrégation socio‐économique, l'étude utilise plusieurs modèles économétriques appliqués à une combinaison unique de données couvrant plus de cent villes mexicaines. La part des nouveaux logements achetés selon ce système de financement apparait comme un facteur déterminant dans l'accentuation de la ségrégation au cours des années 1990 et dans la proportion de la ségrégation socio‐économique générée par la répartition du parc de logements. Les résultats mettent en avant une conséquence secondaire (négligée jusqu'ici) de la nouvelle politique et illustre combien la structure de financement des logements pèse sur la façon dont les villes sont construites et sur le lieu d'habitation des populations dans ces villes.
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