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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. Copyright Blackwell Publishers, 2006

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.
  • Handle: RePEc:bla:jregsc:v:46:y:2006:i:1:p:5-23
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    References listed on IDEAS

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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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    Cited by:

    1. Skidmore, Mark, 2014. "Housing Affordability: Lessons from the United States," Working Paper Series 3422, Victoria University of Wellington, Chair in Public Finance.
    2. Burge, Gregory & Ihlanfeldt, Keith, 2006. "Impact fees and single-family home construction," Journal of Urban Economics, Elsevier, vol. 60(2), pages 284-306, September.
    3. 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.
    4. 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.
    5. ., 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.
    6. 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.
    7. Gyourko, Joseph & Molloy, Raven, 2015. "Regulation and Housing Supply," Handbook of Regional and Urban Economics, Elsevier.
    8. 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.
    9. Ellen Hanak, 2008. "Is Water Policy Limiting Residential Growth? Evidence from California," Land Economics, University of Wisconsin Press, vol. 84(1), pages 31-50.
    10. 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.
    11. Burge, Gregory & Ihlanfeldt, Keith, 2009. "Development impact fees and employment," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 54-62, January.
    12. Joseph Gyourko & Raven Molloy, 2014. "Regulation and Housing Supply," NBER Working Papers 20536, National Bureau of Economic Research, Inc.
    13. 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.
    14. 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.
    15. repec:eee:regeco:v:68:y:2018:i:c:p:277-290 is not listed on IDEAS

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