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The effect of upzoning on house prices and redevelopment premiums in Auckland, New Zealand

Author

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  • Ryan Greenaway-McGrevy

    (University of Auckland)

  • Gail Pacheco

    (Auckland University of Technology)

  • Kade Sorensen

    (University of Auckland)

Abstract

We study the short-run effects of a large-scale upzoning on house prices and redevelopment premiums in Auckland, New Zealand. Upzoning significantly increases the redevelopment premium but the overall effect on house prices depends on the economic potential for site redevelopment, with underdeveloped properties appreciating relative to intensively developed properties. Notably, intensively developed properties decrease in value relative to similar dwellings that were not upzoned, showing that the large-scale upzoning had an immediate depreciative effect on pre-existing intensive housing. Our results show that the economic potential for site redevelopment is fundamental to understanding the impact of changes in land use regulations on property values.

Suggested Citation

  • Ryan Greenaway-McGrevy & Gail Pacheco & Kade Sorensen, 2021. "The effect of upzoning on house prices and redevelopment premiums in Auckland, New Zealand," Urban Studies, Urban Studies Journal Limited, vol. 58(5), pages 959-976, April.
    • Handle: RePEc:sae:urbstu:v:58:y:2021:i:5:p:959-976
    DOI: 10.1177/0042098020940602
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    References listed on IDEAS

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    Cited by:

    1. Emil Mendoza & Fabian Dunker & Marco Reale, 2023. "Changes in Risk Appreciation, and Short Memory of House Buyers When the Market is Hot, a Case Study of Christchurch, New Zealand," Papers 2307.13232, arXiv.org.
    2. Igal Charney, 2024. "Rezoning a top-notch CBD: The choreography of land-use regulation and creative destruction in Manhattan’s East Midtown," Urban Studies, Urban Studies Journal Limited, vol. 61(8), pages 1451-1467, June.
    3. Ryan Greenaway-McGrevy & Kade Sorensen, 2021. "A spatial model averaging approach to measuring house prices," Journal of Spatial Econometrics, Springer, vol. 2(1), pages 1-32, December.
    4. Ka Shing Cheung & Paavo Monkkonen & Chung Yim Yiu, 2024. "The heterogeneous impacts of widespread upzoning: Lessons from Auckland, New Zealand," Urban Studies, Urban Studies Journal Limited, vol. 61(5), pages 943-967, April.
    5. Murray, Cameron & Limb, Mark, 2020. "We zoned for density and got higher house prices: Supply and price effects of upzoning over 20 years," OSF Preprints zkt7v, Center for Open Science.
    6. Donovan Stuart & Matthew Maltman, 2024. "Dispelling myths: Reviewing the evidence on zoning reforms in Auckland," Working Papers 24_07, Motu Economic and Public Policy Research.
    7. Yan Yu & Qiqi Yan & Yu Guo & Chenhe Zhang & Zhixiang Huang & Liangze Lin, 2025. "AI-Based Identification and Redevelopment Prioritization of Inefficient Industrial Land Using Street View Imagery and Multi-Criteria Modeling," Land, MDPI, vol. 14(6), pages 1-19, June.
    8. Buitrago-Mora, Diego & Garcia-López, Miquel-Àngel, 2023. "Real estate prices and land use regulations: Evidence from the Law of Heights in Bogotá," Regional Science and Urban Economics, Elsevier, vol. 101(C).
    9. Zeng, Shibo & Zhang, Yaxin & Jin, Gui, 2025. "Can urban low-carbon transformation affect the prices of its industrial land? An empirical study based on spatial regression discontinuity," Land Use Policy, Elsevier, vol. 148(C).
    10. Yuanyuan Huang & Scott N. Lieske & Yan Liu, 2023. "Factors influencing vertical urban development at the parcel scale: The case in Brisbane, Australia," Environment and Planning B, , vol. 50(3), pages 694-708, March.
    11. Christina Stacy & Chris Davis & Yonah Slifkin Freemark & Lydia Lo & Graham MacDonald & Vivian Zheng & Rolf Pendall, 2023. "Land-use reforms and housing costs: Does allowing for increased density lead to greater affordability?," Urban Studies, Urban Studies Journal Limited, vol. 60(14), pages 2919-2940, November.
    12. Greenaway-McGrevy, Ryan & Phillips, Peter C.B., 2023. "The impact of upzoning on housing construction in Auckland," Journal of Urban Economics, Elsevier, vol. 136(C).

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