IDEAS home Printed from https://ideas.repec.org/a/bla/reesec/v52y2024i3p885-907.html
   My bibliography  Save this article

ADUs in Los Angeles: Where are they located and by how much do they raise property value?

Author

Listed:
  • Jan K. Brueckner
  • Sarah Thomaz

Abstract

Using data from Los Angeles, this article explores the locational determinants as well as the assessed‐value effects of the presence of accessory dwelling units (ADUs). The results show that ADUs are less likely to be found on large parcels containing newer houses and at dense locations near the CBD, the LAX airport, and beaches. ADU presence is more likely close to commercial districts, light‐rail stations, and educational establishments but less likely in higher income areas and Black neighborhoods, although parcels in Latino neighborhoods are more likely to contain ADUs. The assessed‐value regressions show that ADU presence raises a parcel's assessed value and selling price by 7%–9%, while also accurately capturing the unusual rules for property assessments under California's Proposition 13.

Suggested Citation

  • Jan K. Brueckner & Sarah Thomaz, 2024. "ADUs in Los Angeles: Where are they located and by how much do they raise property value?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 52(3), pages 885-907, May.
    • Handle: RePEc:bla:reesec:v:52:y:2024:i:3:p:885-907
    DOI: 10.1111/1540-6229.12471
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1540-6229.12471
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1540-6229.12471?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Molloy, Raven, 2020. "The effect of housing supply regulation on housing affordability: A review," Regional Science and Urban Economics, Elsevier, vol. 80(C).
    3. Brueckner, Jan K. & Rabe, Claus & Selod, Harris, 2019. "Backyarding: Theory and evidence for South Africa," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    4. Davidoff, Thomas & Pavlov, Andrey & Somerville, Tsur, 2022. "Not in my neighbour’s back yard? Laneway homes and neighbours’ property values," Journal of Urban Economics, Elsevier, vol. 128(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Han, Wenjing & Zhang, Xiaoling & Zheng, Xian, 2020. "Land use regulation and urban land value: Evidence from China," Land Use Policy, Elsevier, vol. 92(C).
    2. Gyourko, Joseph & Hartley, Jonathan S. & Krimmel, Jacob, 2021. "The local residential land use regulatory environment across U.S. housing markets: Evidence from a new Wharton index," Journal of Urban Economics, Elsevier, vol. 124(C).
    3. Letrouit,Lucie Michele Maya & Selod,Harris, 2020. "Trust or Property Rights ? Can Trusted Relationships Substitute for Costly Land Registration in West African Cities ?," Policy Research Working Paper Series 9310, The World Bank.
    4. Liu, Ruiming & Yan, Haosheng & Zhang, Zebang, 2024. "Does historic preservation affect firms' output? Evidence from the awarding of the Historic City title in China," China Economic Review, Elsevier, vol. 85(C).
    5. Doris Kwon & Olav Sorenson, 2023. "The Silicon Valley Syndrome," Entrepreneurship Theory and Practice, , vol. 47(2), pages 344-368, March.
    6. Nicholas Chiumenti & Amrita Kulka & Aradhya Sood, 2022. "How to Increase Housing Affordability: Understanding Local Deterrents to Building Multifamily Housing," Working Papers 22-10, Federal Reserve Bank of Boston.
    7. Lin, Chuanhao, 2024. "Do households value lower density: Theory, evidence, and implications from Washington, DC," Regional Science and Urban Economics, Elsevier, vol. 108(C).
    8. Larson, William & Yezer, Anthony & Zhao, Weihua, 2022. "Urban planning policies and the cost of living in large cities," Regional Science and Urban Economics, Elsevier, vol. 96(C).
    9. Remi Jedwab & Mr. Prakash Loungani & Anthony Yezer, 2019. "How Should We Measure City Size? Theory and Evidence Within and Across Rich and Poor Countries," IMF Working Papers 2019/203, International Monetary Fund.
    10. Brandts, Jordi & Busom, Isabel & Lopez-Mayan, Cristina & Panadés, Judith, 2022. "Dispelling misconceptions about economics," Journal of Economic Psychology, Elsevier, vol. 88(C).
    11. Molloy, Raven, 2020. "The effect of housing supply regulation on housing affordability: A review," Regional Science and Urban Economics, Elsevier, vol. 80(C).
    12. Adam Found, 2021. "Development Charges and Housing Affordability: A False Dichotomy?," IMFG Papers 56, University of Toronto, Institute on Municipal Finance and Governance.
    13. M. Picard,Pierre & Selod,Harris, 2020. "Customary Land Conversion and the Formation of the African City," Policy Research Working Paper Series 9192, The World Bank.
    14. David Agorastos & Rowena Gray & Ronan Lyons & Allison Shertzer, 2024. "The Price of Housing in the United States, 1890–2006," Working Papers 24-12, Federal Reserve Bank of Philadelphia.
    15. Jedwab, Remi & Barr, Jason & Brueckner, Jan K., 2022. "Cities Without Skylines: Worldwide Building-Height Gaps and their Possible Determinants and Implications," Journal of Urban Economics, Elsevier, vol. 132(C).
    16. Dobbels, Gregory & Tavakalov, Suren, 2024. "Not in My Back Yard: The Local Political Economy of Residential Land-Use Regulations," MPRA Paper 122679, University Library of Munich, Germany.
    17. Nathaniel Harris & Chuanhao Lin, 2024. "Planning Regulations: Two Tests to Determine if We Have Confused the Cure With the Disease," Working Papers 2024-02, The George Washington University, Institute for International Economic Policy.
    18. Xi Yang, 2021. "Land-Use Regulations and Urban Growth of African Americans," Economic Development Quarterly, , vol. 35(4), pages 338-350, November.
    19. Howard, Greg & Liebersohn, Jack, 2021. "Why is the rent so darn high? The role of growing demand to live in housing-supply-inelastic cities," Journal of Urban Economics, Elsevier, vol. 124(C).
    20. Alessandra Canepa & Emilio Zanetti Chini & Huthaifa Alqaralleh, 2022. "Global Cities and Local Challenges: Booms and Busts in the London Real Estate Market," The Journal of Real Estate Finance and Economics, Springer, vol. 64(1), pages 1-29, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reesec:v:52:y:2024:i:3:p:885-907. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/areueea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.