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Regulation, Open Space, and the Value of Land Undergoing Residential Subdivision

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  • Ian Hardie
  • Erik Lichtenberg
  • Cynthia J. Nickerson

Abstract

We investigate the effects of forest conservation requirements and zoning on the value of land undergoing subdivision. Land prices are increasing in the percentage of subdivision acreage developers are required to keep in forest, suggesting that forest conservation regulations increase the amounts of forested open space that developers provide. Benefits from open-space amenities remain largely internal to the subdivision, so that land market incentives mitigate the justification for open space preservation policies. Consistent with theoretical predictions that zoning promotes sprawl, we find that minimum-lot-size zoning constrains developers of closer-in subdivisions where public sewers are available.

Suggested Citation

  • Ian Hardie & Erik Lichtenberg & Cynthia J. Nickerson, 2007. "Regulation, Open Space, and the Value of Land Undergoing Residential Subdivision," Land Economics, University of Wisconsin Press, vol. 83(4), pages 458-474.
  • Handle: RePEc:uwp:landec:v:83:y:2007:i:4:p:458-474
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    References listed on IDEAS

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    1. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, March.
    2. Thorsnes, Paul, 2000. "Internalizing Neighborhood Externalities: The Effect of Subdivision Size and Zoning on Residential Lot Prices," Journal of Urban Economics, Elsevier, vol. 48(3), pages 397-418, November.
    3. C H Yang & M Fujita, 1983. "Urban Spatial Structure with Open Space," Environment and Planning A, , vol. 15(1), pages 67-84, January.
    4. Bucholtz, Shawn & Geoghegan, Jacqueline & Lynch, Lori, 2003. "Capitalization of Open Spaces into Housing Values and the Residential Property Tax Revenue Impacts of Agricultural Easement Programs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 32(1), April.
    5. Hans R. Isakson & Mark D. Ecker, 2001. "An Analysis of the Influence of Location in the Market for Undeveloped Urban Fringe Land," Land Economics, University of Wisconsin Press, vol. 77(1), pages 30-41.
    6. Thorsnes, Paul & McMillen, Daniel P, 1998. "Land Value and Parcel Size: A Semiparametric Analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 17(3), pages 233-244, November.
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    Citations

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    Cited by:

    1. Elizabeth Kopits & Virginia McConnell & Margaret Walls, 2007. "The Trade-off between Private Lots and Public Open Space in Subdivisions at the Urban-Rural Fringe," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1191-1197.
    2. B. James Deaton & Richard J. Vyn, 2015. "The Effect of Ontario's Greenbelt on the Price of Vacant Farmland," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 185-208, June.
    3. Cotteleer, Geerte & van Kooten, G. Cornelis, 2012. "Expert opinion versus actual transaction evidence in the valuation of non-market amenities," Economic Modelling, Elsevier, vol. 29(1), pages 32-40.
    4. Richard J. Vyn, 2015. "The Effect of Agricultural Zoning on Rural Residential Property Values: An Application to Ontario's Greenbelt," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 281-307, September.
    5. Waltert, Fabian & Schl├Ąpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    6. Lichtenberg, Erik & Tra, Constant & Hardie, Ian, 2007. "Land use regulation and the provision of open space in suburban residential subdivisions," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 199-213, September.
    7. Richard J. Vyn, 2012. "Examining for Evidence of the Leapfrog Effect in the Context of Strict Agricultural Zoning," Land Economics, University of Wisconsin Press, vol. 88(3), pages 457-477.
    8. Yong Chen & David J. Lewis & Bruce Weber, 2016. "Conservation Land Amenities And Regional Economies: A Postmatching Difference-In-Differences Analysis Of The Northwest Forest Plan," Journal of Regional Science, Wiley Blackwell, vol. 56(3), pages 373-394, June.
    9. Lichtenberg, Erik, 2008. "Open Space and Urban Sprawl: The Case of the Maryland Forest Conservation Act," Working Papers 37812, University of Maryland, Department of Agricultural and Resource Economics.

    More about this item

    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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