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Land-use Planning and the Housing Market: A Comparative Review of the UK and the USA

Author

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  • Michael White

    (Department of Land Economy, School of Resources, Environment and Society, University of Aberdeen, King's College, Aberdeen, AB24 3UF, UK, m.white@abdn.ac.uk)

  • Philip Allmendinger

    (Department of Land Economy, School of Resources, Environment and Society, University of Aberdeen, King's College, Aberdeen, AB24 3UF, UK, p.allmendinger@abdn.ac.uk)

Abstract

This paper provides a review of some of the key articles and research examining the relationship between planning regulation and its impact on the housing market in the UK and the US. In both countries, demographic change coupled with economic growth has increased demand for housing units and in the UK, over 4 million new units are estimated to be needed by 2016. Given these pressures, the interaction of the planning system and the housing market is critical. The articles reviewed below mainly adopt a mainstream economics approach to modelling the impact of planning on housing markets. They are concerned with outcomes. An additional or alternative approach is provided by behavioural analyses of the relationship between planning and housing development. These enable the more complex interactions to come to light. This paper indicates the differences that exist between the UK and US planning approaches; however, in both countries, planning constraints are seen to raise price, reduce supply, increase density and, in the UK at least, reduce choice. However, planning is also seen to provide certainty and reduce risk. Of key interest is the price elasticity of supply of housing. Post-war estimates suggest a value for the long-run elasticity to be between 0 and 1 for the UK, and 6 to 13 for the US.

Suggested Citation

  • Michael White & Philip Allmendinger, 2003. "Land-use Planning and the Housing Market: A Comparative Review of the UK and the USA," Urban Studies, Urban Studies Journal Limited, vol. 40(5-6), pages 953-972, May.
    • Handle: RePEc:sae:urbstu:v:40:y:2003:i:5-6:p:953-972
    DOI: 10.1080/0042098032000074263
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    References listed on IDEAS

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    2. Eddie Chi Man Hui & Ka Hung Yu, 2006. "Simulating Hong Kong’s Office Leasing Market via System Dynamics Modeling," International Real Estate Review, Global Social Science Institute, vol. 9(1), pages 23-43.
    3. Bernard Fingleton & Franz Fuerst & Nikodem Szumilo, 2019. "Housing affordability: Is new local supply the key?," Environment and Planning A, , vol. 51(1), pages 25-50, February.
    4. Geoffrey Meen & Christian Nygaard, 2011. "Local Housing Supply and the Impact of History and Geography," Urban Studies, Urban Studies Journal Limited, vol. 48(14), pages 3107-3124, November.
    5. Glen Bramley & David Watkins, 2014. "‘Measure Twice, Cut Once’—Revisiting the Strength and Impact of Local Planning Regulation of Housing Development in England," Environment and Planning B, , vol. 41(5), pages 863-884, October.
    6. Antoine Paccoud & Markus Hesse & Tom Becker & Magdalena Górczyńska, 2022. "Land and the housing affordability crisis: landowner and developer strategies in Luxembourg’s facilitative planning context," Housing Studies, Taylor & Francis Journals, vol. 37(10), pages 1782-1799, October.
    7. Tiangui Lv & Li Wang & Hualin Xie & Xinmin Zhang & Yanwei Zhang, 2021. "Exploring the Global Research Trends of Land Use Planning Based on a Bibliometric Analysis: Current Status and Future Prospects," Land, MDPI, vol. 10(3), pages 1-19, March.
    8. Michael Ball, 2011. "Planning Delay and the Responsiveness of English Housing Supply," Urban Studies, Urban Studies Journal Limited, vol. 48(2), pages 349-362, February.
    9. Lehmann, Paul & Tafarte, Philip, 2024. "Exclusion zones for renewable energy deployment: One man’s blessing, another man’s curse," Resource and Energy Economics, Elsevier, vol. 76(C).
    10. Gilbert, Catherine & Gurran, Nicole, 2021. "Can ceding planning controls for major projects support metropolitan housing supply and diversity? The case of Sydney, Australia," Land Use Policy, Elsevier, vol. 102(C).
    11. Klaas Kresse & Erwin van der Krabben, 2021. "Housing Supply Limitations, Land Readjustment and the Ecological Performance of the Urban Landscape," Sustainability, MDPI, vol. 13(17), pages 1-24, August.
    12. Ackerschott, Adriana & Kohlhase, Esther & Vollmer, Anita & Hörisch, Jacob & von Wehrden, Henrik, 2023. "Steering of land use in the context of sustainable development: A systematic review of economic instruments," Land Use Policy, Elsevier, vol. 129(C).
    13. Lojschova, Adriana & Wagner, Karin & Schmidt, Alexander & Akantziliotou, Calliope & Dujardin, Marine & Kennedy, Gerard & Pontuch, Peter, 2015. "Report on residential real estate and financial stability in the EU, Section 1. on Structural features of residential real estate markets," MPRA Paper 79723, University Library of Munich, Germany.
    14. 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.
    15. Nguyen Tuan Tran, 2024. "Land Cover Change in Hanoi: A Comparison Between Planning Cycles," Real Estate Management and Valuation, Sciendo, vol. 32(2), pages 1-12.
    16. Timothy Dixon & David Adams, 2008. "Housing Supply and Brownfield Regeneration in a post-Barker World: Is There Enough Brownfield Land in England and Scotland?," Urban Studies, Urban Studies Journal Limited, vol. 45(1), pages 115-139, January.
    17. Salvatore Bimonte & Arsenio Stabile, 2019. "The Effect of Growth and Corruption on Soil Sealing in Italy: A Regional Environmental Kuznets Curve Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1497-1518, December.
    18. Lehmann, Paul & Tafarte, Philip, 2023. "The opportunity costs of environmental exclusion zones for renewable energy deployment," UFZ Discussion Papers 2/2023, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).

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