The impact of large-lot zoning and open space acquisition on home building in rural communities
Local governments in the United States use a wide range of tools to preserve rural landscapes. Some of these tools, like the purchase or transfer of development rights, are generally welcomed by farmers and other large landowners. Other tools, like increasing the minimum lot size in a town’s agricultural zone, are more controversial because they are believed to have negative effects on landowner wealth. In this contentious policy environment, it would be useful to know which land use tools actually work to control residential growth, thus achieving the consensual objective of rural preservation. It is reasonable to suppose that large-lot zoning and open space preservation will both reduce the number of homes in a community when it is fully developed. The short and medium-term effects of these policies, however, are less certain. Indeed, there is some evidence that permanently-preserved open space increases short-run home building through an “amenity magnet” effect. Similarly, an increase in minimum lot size could trigger the immediate development of agricultural land by reducing the option value of waiting. This study uses data on 83 communities in the Highlands region of New Jersey to help answer these questions about the unintended consequences of these two rural conservation tools. The dataset includes GIS-based information on developable land, open space inventory, and minimum lot size zoning for the period 1995 to 2002. The study concludes that the relationship between minimum lot size and homebuilding in a community can be described as a concave quadratic. The pace of homebuilding rises to a maximum at a weighted average minimum lot size of 4.15, and then starts to fall. The percentage of a community that is permanently-preserved open space was found to have no significant effect on homebuilding, other things equal.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Irwin, Elena G. & Bell, Kathleen P. & Geoghegan, Jacqueline, 2003. "Modeling and Managing Urban Growth at the Rural-Urban Fringe: A Parcel-Level Model of Residential Land Use Change," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 32(1), April.
- Mayer, Christopher J. & Somerville, C. Tsuriel, 2000.
"Land use regulation and new construction,"
Regional Science and Urban Economics,
Elsevier, vol. 30(6), pages 639-662, December.
- Brian Roe & Elena G. Irwin & Hazel A. Morrow-Jones, 2004. "The Effects of Farmland, Farmland Preservation, and Other Neighborhood Amenities on Housing Values and Residential Growth," Land Economics, University of Wisconsin Press, vol. 80(1), pages 55-75.
- Thorson, James A., 1997. "The Effect of Zoning on Housing Construction," Journal of Housing Economics, Elsevier, vol. 6(1), pages 81-91, March.
- Carmen Carrión-Flores & Elena G. Irwin, 2004. "Determinants of Residential Land-Use Conversion and Sprawl at the Rural-Urban Fringe," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 889-904.
- Elena G. Irwin, 2002. "Interacting agents, spatial externalities and the evolution of residential land use patterns," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 31-54, January.
- Cheshire, Paul & Sheppard, Stephen, 1998. "Estimating the Demand for Housing, Land, and Neighbourhood Characteristics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 357-82, August.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea09:49310. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.