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The Causes and Consequences of Land Use Regulation: Evidence from Greater Boston

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  • Edward L. Glaeser
  • Bryce A. Ward

Abstract

Over the past 30 years, eastern Massachusetts has seen a remarkable combination of rising home prices and declining supply of new homes. The reductions in new supply don't appear to reflect a real lack of land, but instead reflect a response to man-made restrictions on development. In this paper, we examine the land-use regulations in greater Boston. There has been a large increase in the number of new regulations, which differ widely over space. Few variables, other than historical density and abundant recreational water, reliably predict these regulations. High lot sizes and other regulations are associated with less construction. The regulations boost prices by decreasing density, but density levels seem far too low to maximize total land value.

Suggested Citation

  • Edward L. Glaeser & Bryce A. Ward, 2006. "The Causes and Consequences of Land Use Regulation: Evidence from Greater Boston," NBER Working Papers 12601, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:12601
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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