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Effects of Land-Related Policies on Land Development during a Real Estate Boom and a Recession

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Listed:
  • Seong-Hoon Cho
  • Seung Gyu Kim
  • Roland K. Roberts
  • Dayton M. Lambert
  • Taeyoung Kim

Abstract

Our research evaluates and compares the effects of three land-related policies on land development in a sprawling metropolitan area during a real estate boom and a recession. Our findings suggest that during a real estate boom 1) the urban growth boundary (UGB) serves its purpose of attracting urban development inside the given boundary during a boom while its effectiveness diminishes with increased development pressure from lower-valued land outside of the UGB during a recession period, 2) the agricultural zone works well for restraining new development during a boom period while agriculture zoned parcels are more likely developed during a recession period, and 3) an increase in the land-value tax bill increases the incentive for development during a recession period while higher tax bills do not affect development during a boom period. In anticipation of a re-emergence of urban sprawl with the recovery of the real estate market, our findings imply that land planners and others concerned with sprawling development should pay more attention to development in sprawl-prone areas during recession periods.

Suggested Citation

  • Seong-Hoon Cho & Seung Gyu Kim & Roland K. Roberts & Dayton M. Lambert & Taeyoung Kim, 2015. "Effects of Land-Related Policies on Land Development during a Real Estate Boom and a Recession," Growth and Change, Wiley Blackwell, vol. 46(2), pages 218-232, June.
    • Handle: RePEc:bla:growch:v:46:y:2015:i:2:p:218-232
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    File URL: http://hdl.handle.net/10.1111/grow.12071
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    References listed on IDEAS

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    1. Pinkse, Joris & Slade, Margaret E., 1998. "Contracting in space: An application of spatial statistics to discrete-choice models," Journal of Econometrics, Elsevier, vol. 85(1), pages 125-154, July.
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    6. Seong-Hoon Cho & Dayton M. Lambert & Roland K. Roberts, 2010. "Forecasting Open Space with a Two-Rate Property Tax," Land Economics, University of Wisconsin Press, vol. 86(2), pages 263-280.
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    Cited by:

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    2. Xiaoqiang Shen & Jinping Wang & Xiaobin Zhang & Hanlu Bei, 2022. "Review of Research on Non-Conforming Urban Expansion: Measurement, Interpretation, and Governance," Land, MDPI, vol. 11(12), pages 1-21, November.
    3. Mariateresa Ciommi & Francesco M. Chelli & Luca Salvati, 2019. "Integrating parametric and non-parametric multivariate analysis of urban growth and commuting patterns in a European metropolitan area," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 957-979, March.
    4. Jeon, Jae Sik, 2019. "How housing market responds to greenbelt relaxation: Case of Seoul Metropolitan Area, South Korea," Land Use Policy, Elsevier, vol. 84(C), pages 328-334.

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