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When developers hold office: Shaping housing supply through local polítics

Author

Listed:
  • Ghizlen Ouasbaa

    (Pompeu Fabra & IEB)

  • Albert Solé-Ollé

    (Universitat de Barcelona & IEB)

  • Elisabet Viladecans-Marsal

    (Universitat de Barcelona & IEB & CEPR)

Abstract

We examine the impact of city council members with real estate backgrounds on housing supply in California 1995-2019. Using candidate occupation data and a close-elections regression discontinuity design, we find that electing a developer increases approved housing units by 68% during their term. This effect fades after one term, suggesting developers influence zoning decisions more than long-term policy change. Analysis of votes extracted from council meetings shows they are especially effective in securing discretionary zoning approvals. Importantly, we find no evidence of electoral backlash, suggesting voters are generally supportive of housing expansion led by pro-development candidates.

Suggested Citation

  • Ghizlen Ouasbaa & Albert Solé-Ollé & Elisabet Viladecans-Marsal, 2025. "When developers hold office: Shaping housing supply through local polítics," Working Papers 2025/05, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2025-05
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    File URL: https://ieb.ub.edu/wp-content/uploads/2025/04/Doc2025-05.pdf
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    More about this item

    Keywords

    Land-use Policies; Housing Market; Interest Groups;
    All these keywords.

    JEL classification:

    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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