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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.

Suggested Citation

  • 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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    References listed on IDEAS

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    Cited by:

    1. Brueckner, Jan K. & Singh, Ruchi, 2020. "Stringency of land-use regulation: Building heights in US cities," Journal of Urban Economics, Elsevier, vol. 116(C).
    2. Joseph Gyourko & Jonathan Hartley & Jacob Krimmel, 2019. "The Local Residential Land Use Regulatory Environment Across U.S. Housing Markets: Evidence from a New Wharton Index," NBER Working Papers 26573, National Bureau of Economic Research, Inc.
    3. 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.
    4. Canepa, Alessandra & Zanetti Chini, Emilio & Alqaralleh, Huthaifa, 2020. "Global Cities and Local Challenges: Booms and Busts in the London Real Estate Market," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202011, University of Turin.
    5. Molloy, Raven, 2020. "The effect of housing supply regulation on housing affordability: A review," Regional Science and Urban Economics, Elsevier, vol. 80(C).

    More about this item

    Keywords

    Land-use regulation; Zoning; Housing supply elasticity; Housing market;

    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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