IDEAS home Printed from https://ideas.repec.org/p/rri/wpaper/2004wp12.html
   My bibliography  Save this paper

Effects of Zoning on Residential Option Value

Author

Listed:
  • Jonathan Young

    (Department of Economics, West Virginia University)

Abstract

Knowing more precisely how zoning affects housing value would allow policy-makers to improve long-term policy decisions. Previous studies have concluded that local zoning regulations affect residential option value. These studies, however, do not specify the magnitude of the effect for varying zoning types. This study quantifies zoning’s effect on residential option value for specific types of zoning using a hedonic regression model of housing prices. The study utilizes information on housing characteristics and sales prices for a cross-section of houses in Monongalia County, West Virginia. The research develops two models to differentiate between zoning effects on developed versus undeveloped properties. The research finds that R1 and R1a zoning regulations – the most common types of residential zoning in Monongalia County – significantly impact housing value.

Suggested Citation

  • Jonathan Young, 2004. "Effects of Zoning on Residential Option Value," Working Papers Working Paper 2004-12, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2004wp12
    as

    Download full text from publisher

    File URL: https://researchrepository.wvu.edu/rri_pubs/122/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeremy R. Groves & Eric Helland, 2002. "Zoning and the Distribution of Location Rents: An Empirical Analysis of Harris County, Texas," Land Economics, University of Wisconsin Press, vol. 78(1), pages 28-44.
    2. J. Phillips & E. Goodstein, 2000. "Growth management and housing prices: the case of Portland, Oregon," Contemporary Economic Policy, Western Economic Association International, vol. 18(3), pages 334-344, July.
    3. Turnbull, Geoffrey K., 1991. "A comparative dynamic analysis of zoning in a growing city," Journal of Urban Economics, Elsevier, vol. 29(2), pages 235-248, March.
    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. Marin V. Geshkov & Joseph S. DeSalvo, 2012. "The Effect Of Land-Use Controls On The Spatial Size Of U.S. Urbanized Areas," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 648-675, October.
    2. repec:rri:wpaper:200412 is not listed on IDEAS
    3. Shuangqing Sheng & Wei Song & Hua Lian & Lei Ning, 2022. "Review of Urban Land Management Based on Bibliometrics," Land, MDPI, vol. 11(11), pages 1-25, November.
    4. Paul C. Cheshire & Christian A. L. Hilber, 2008. "Office Space Supply Restrictions in Britain: The Political Economy of Market Revenge," Economic Journal, Royal Economic Society, vol. 118(529), pages 185-221, June.
    5. John Landis & Vincent J. Reina, 2021. "Do Restrictive Land Use Regulations Make Housing More Expensive Everywhere?," Economic Development Quarterly, , vol. 35(4), pages 305-324, November.
    6. Dong Chen & Rongrong Liu & Maoxian Zhou, 2023. "Delineation of Urban Growth Boundary Based on Habitat Quality and Carbon Storage: A Case Study of Weiyuan County in Gansu, China," Land, MDPI, vol. 12(5), pages 1-17, May.
    7. Paul Cheshire, 2008. "Reflections on the nature and policy implications of planning restrictions on housing supply. Discussion of 'Planning policy, planning practice, and housing supply' by Kate Barker," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(1), pages 50-58, spring.
    8. Jyh-Bang Jou & Tan Lee, 2007. "Do Tighter Restrictions on Density Retard Development?," The Journal of Real Estate Finance and Economics, Springer, vol. 34(2), pages 225-232, February.
    9. 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.
    10. Brueckner, Jan K., 1995. "Strategic control of growth in a system of cities," Journal of Public Economics, Elsevier, vol. 57(3), pages 393-416, July.
    11. Jyh-Bang Jou & Tan (Charlene) Lee, 2009. "How Does a Development Moratorium Affect Development Timing Choices and Land Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 39(3), pages 301-315, October.
    12. Han, Albert Tonghoon & Daniels, Thomas L. & Kim, Chaeri, 2022. "Managing urban growth in the wake of climate change: Revisiting greenbelt policy in the US," Land Use Policy, Elsevier, vol. 112(C).
    13. Wu, JunJie & Cho, Seong-Hoon, 2007. "The effect of local land use regulations on urban development in the Western United States," Regional Science and Urban Economics, Elsevier, vol. 37(1), pages 69-86, January.
    14. Somayeh Ahani & Hashem Dadashpoor, 2021. "Urban growth containment policies for the guidance and control of peri-urbanization: a review and proposed framework," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14215-14244, October.
    15. Richard J. Vyn, 2012. "Examining for Evidence of the Leapfrog Effect in the Context of Strict Agricultural Zoning," Land Economics, University of Wisconsin Press, vol. 88(3), pages 457-477.
    16. Paul Cheshire, 2009. "Urban Containment, Housing Affordability and Price Stability - Irreconcilable Goals," SERC Policy Papers 004, Centre for Economic Performance, LSE.
    17. Samuel M. Otterstrom, 2015. "Income Migration and Home Price Trajectories in the United States," International Real Estate Review, Global Social Science Institute, vol. 18(2), pages 277-302.
    18. Cho, Seong-Hoon & Chen, Zhuo & Yen, Steven T. & Eastwood, David B., 2006. "Estimating Effects of an Urban Growth Boundary on Land Development," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(2), pages 1-12, August.
    19. Lyytikäinen, Teemu, 2007. "The Effect of Three-rate Property Taxation on Housing Construction," Discussion Papers 419, VATT Institute for Economic Research.
    20. Cheung, Ron & Ihlanfeldt, Keith & Mayock, Thomas, 2009. "The regulatory tax and house price appreciation in Florida," Journal of Housing Economics, Elsevier, vol. 18(1), pages 34-48, March.
    21. ., 2014. "Planning for a housing crisis: or the alchemy by which we turn houses into gold," Chapters, in: Urban Economics and Urban Policy, chapter 4, pages 79-103, Edward Elgar Publishing.

    More about this item

    Keywords

    zoning; housing value; policy; regional development; West Virginia;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

    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:rri:wpaper:2004wp12. 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: Randall Jackson (email available below). General contact details of provider: https://edirc.repec.org/data/rrwvuus.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.