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Regulation, land constraints, and California’s boom and bust

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  • Jackson, Kristoffer (Kip)

Abstract

Using new data from a survey of top local land-use officials, this paper provides a measure of both local regulatory stringency and the degree to which land constraints inhibit local development in California. After briefly exploring differences in patterns of regulation and land constraints across the state, the index is applied to a model of housing prices. While regulation did not play a meaningful role in the recent housing market boom and bust in California, this paper finds that where housing demand increased through the expansion of subprime lending, land constraints exacerbated the run-up and subsequent crash of local housing prices.

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  • Jackson, Kristoffer (Kip), 2018. "Regulation, land constraints, and California’s boom and bust," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 130-147.
    • Handle: RePEc:eee:regeco:v:68:y:2018:i:c:p:130-147
    DOI: 10.1016/j.regsciurbeco.2017.10.005
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    Cited by:

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    5. Fesselmeyer, Eric & Seah, Kiat Ying Sky, 2018. "The effect of localized density on housing prices in Singapore," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 304-315.
    6. Alqaralleh, Huthaifa & Canepa, Alessandra, 2020. "Housing market cycles in large urban areas," Economic Modelling, Elsevier, vol. 92(C), pages 257-267.
    7. Xi Yang, 2021. "Land-Use Regulations and Urban Growth of African Americans," Economic Development Quarterly, , vol. 35(4), pages 338-350, November.
    8. Doris Kwon & Olav Sorenson, 2023. "The Silicon Valley Syndrome," Entrepreneurship Theory and Practice, , vol. 47(2), pages 344-368, March.
    9. Alessandra Canepa & Emilio Zanetti Chini & Huthaifa Alqaralleh, 2022. "Global Cities and Local Challenges: Booms and Busts in the London Real Estate Market," The Journal of Real Estate Finance and Economics, Springer, vol. 64(1), pages 1-29, January.
    10. Jedwab, Remi & Barr, Jason & Brueckner, Jan K., 2022. "Cities Without Skylines: Worldwide Building-Height Gaps and their Possible Determinants and Implications," Journal of Urban Economics, Elsevier, vol. 132(C).
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    More about this item

    Keywords

    Land-use regulation; Zoning; Housing supply elasticity; Housing market;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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