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The Effects Of Impact Fees On Multifamily Housing Construction

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  • Gregory Burge
  • Keith Ihlanfeldt

Abstract

. Development impact fees may create more housing opportunities for lower‐income households within suburban areas if there is a fiscal incentive behind the adoption of exclusionary land‐use regulations. Using panel data estimation techniques that allow us to control for unobservable heterogeneity and potential endogeneities, we estimate the effects of different types of impact fees on multifamily housing construction using data from Florida counties. Impact fees earmarked for public services other than for offsite water and sewer system improvements are found to expand the stock of multifamily housing construction within inner suburban areas. Water/sewer impact fees, on the other hand, are found to reduce construction throughout the entire metropolitan area.

Suggested Citation

  • Gregory Burge & Keith Ihlanfeldt, 2006. "The Effects Of Impact Fees On Multifamily Housing Construction," Journal of Regional Science, Wiley Blackwell, vol. 46(1), pages 5-23, February.
  • Handle: RePEc:bla:jregsc:v:46:y:2006:i:1:p:5-23
    DOI: 10.1111/j.0022-4146.2006.00431.x
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    1. Helen F. Ladd, 1998. "local government tax and land use policies in the united states," Books, Edward Elgar Publishing, number 1332.
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    1. Changhoon Jung & Chul-Young Roh & Younguck Kang, 2009. "Longitudinal Effects of Impact Fees and Special Assessments on the Level of Capital Spending, Taxes, and Long-Term Debt in American Cities," Public Finance Review, , vol. 37(5), pages 613-636, September.
    2. Mark Skidmore, 2014. "Housing Affordability: Lessons from the United States," Treasury Working Paper Series 14/11, New Zealand Treasury.
    3. Millar, Jonathan N. & Oliner, Stephen D. & Sichel, Daniel E., 2016. "Time-to-plan lags for commercial construction projects," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 75-89.
    4. Burge, Gregory & Ihlanfeldt, Keith, 2006. "Impact fees and single-family home construction," Journal of Urban Economics, Elsevier, vol. 60(2), pages 284-306, September.
    5. Burge, Gregory & Ihlanfeldt, Keith, 2009. "Development impact fees and employment," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 54-62, January.
    6. Barbour, Elisa & Jin, Janet & Goldsmith, Emma & Grover, Salvador & Martinez, Jacqueline & Handy, Susan, 2021. "Tensions and Trade-offs in Planning and Policymaking for Transit-Oriented Development, Transit, and Active Transport in California Cities," Institute of Transportation Studies, Working Paper Series qt49t729rc, Institute of Transportation Studies, UC Davis.
    7. Gyourko, Joseph & Molloy, Raven, 2015. "Regulation and Housing Supply," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1289-1337, Elsevier.
    8. Ralph McLaughlin, 2012. "New housing supply elasticity in Australia: a comparison of dwelling types," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 595-618, April.
    9. Ihlanfeldt, Keith, 2019. "The deconcentration of minority students attending bad schools: The role of housing affordability within school attendance zones containing good schools," Journal of Housing Economics, Elsevier, vol. 43(C), pages 83-101.
    10. Ball, Michael & Meen, Geoffrey & Nygaard, Christian, 2010. "Housing supply price elasticities revisited: Evidence from international, national, local and company data," Journal of Housing Economics, Elsevier, vol. 19(4), pages 255-268, December.
    11. Gallagher, Ryan M., 2016. "The fiscal externality of multifamily housing and its impact on the property tax: Evidence from cities and schools, 1980–2010," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 249-259.
    12. Bimonte, Salvatore & Stabile, Arsenio, 2015. "Local taxation and urban development. Testing for the side-effects of the Italian property tax," Ecological Economics, Elsevier, vol. 120(C), pages 100-107.
    13. Ihlanfeldt, Keith & Yang, Cynthia Fan, 2019. "The Impact of Rental Housing on Neighborhood Racial and Social Integration," MPRA Paper 93485, University Library of Munich, Germany.
    14. Saiz, Albert, 2023. "The Global Housing Affordability Crisis: Policy Options and Strategies," IZA Policy Papers 203, Institute of Labor Economics (IZA).
    15. Mark Skidmore, 2014. "Housing Affordability: Lessons from the United States," Treasury Working Paper Series 14/11, New Zealand Treasury.
    16. ., 2014. "Planning: reforms that might work and ones that won't," Chapters, in: Urban Economics and Urban Policy, chapter 6, pages 127-154, Edward Elgar Publishing.
    17. Chatman, Daniel G. PhD & Barbour, Elisa PhD & Kerzhner, Tamara & Manville, Michael PhD & Reid, Carolina PhD, 2023. "Policies to Improve Transportation Sustainability, Accessibility, and Housing Affordability in the State of California," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt03z7t8r1, Institute of Transportation Studies, UC Berkeley.
    18. Ihlanfeldt, Keith & Mayock, Tom, 2018. "School segregation and the foreclosure crisis," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 277-290.
    19. Norman Gemmell & Arthur Grimes & Mark Skidmore, 2019. "Do Local Property Taxes Affect New Building Development? Results from a Quasi-Natural Experiment in New Zealand," The Journal of Real Estate Finance and Economics, Springer, vol. 58(2), pages 310-333, February.
    20. Ihlanfeldt, Keith R., 2007. "The effect of land use regulation on housing and land prices," Journal of Urban Economics, Elsevier, vol. 61(3), pages 420-435, May.
    21. Joseph Gyourko & Albert Saiz & Anita Summers, 2008. "A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index," Urban Studies, Urban Studies Journal Limited, vol. 45(3), pages 693-729, March.
    22. Barbour, Elisa, 2022. "From LOS to VMT: Repurposing Impact Fee Programs Since Adoption of SB 743," Institute of Transportation Studies, Working Paper Series qt23m9b31s, Institute of Transportation Studies, UC Davis.
    23. Burge, Gregory, 2014. "The capitalization effects of school, residential, and commercial impact fees on undeveloped land values," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 1-13.
    24. Ellen Hanak, 2008. "Is Water Policy Limiting Residential Growth? Evidence from California," Land Economics, University of Wisconsin Press, vol. 84(1), pages 31-50.

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