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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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    References listed on IDEAS

    as
    1. Jackson, Kristoffer (Kip), 2018. "Regulation, land constraints, and California’s boom and bust," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 130-147.
    2. Jackson, Kristoffer, 2016. "Do land use regulations stifle residential development? Evidence from California cities," Journal of Urban Economics, Elsevier, vol. 91(C), pages 45-56.
    3. Joseph Gyourko & Albert Saiz & Anita Summers, 2008. "A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index," Urban Studies, Urban Studies Journal Limited, vol. 45(3), pages 693-729, March.
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    Keywords

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    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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