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Effects of Housing Codes on Local Housing Markets

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  • Michael L. Walden

Abstract

Housing codes are typically instituted in order to raise the average level of housing quality in a community. However, in doing so, the institution of a housing code likely has effects on other housing characteristics. Using data from municipalities in North Carolina, this study finds that municipalities with housing codes have higher average occupancy densities among all households and lower homeownership rates among low‐income households, but housing codes have no statistically discernible effect on housing values and expenditures. The results suggest that housing codes are not costless; most importantly, codes force consumers to trade housing quantity for quality.

Suggested Citation

  • Michael L. Walden, 1987. "Effects of Housing Codes on Local Housing Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 15(2), pages 13-31, June.
    • Handle: RePEc:bla:reesec:v:15:y:1987:i:2:p:13-31
    DOI: 10.1111/1540-6229.00416
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