Smart growth and housing choice

This chapter reviews recent empirical evidence to assess what is known about the effects of smart growth regulatory reforms on two dimensions of housing choice: affordability (supply of homes priced at or near construction costs) and diversity (variability in housing options by tenure and type within neighborhoods). We conclude that while traditional land use regulations have been shown to inflate the price of housing and limit the diversity of housing options, it is difficult to draw definitive conclusions about the housing market impacts of comprehensive smart growth policy reforms, because restrictive regulations are often adopted in concert with other policies that mediate the impact of housing supply restrictions. Furthermore, policies designed to promote a diversity of housing options may or may not foster local population diversity. The evidence reviewed suggests that land use regulatory reform is one, but not the only, tool for expanding housing choice.