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Several studies suggest that zoning, and other land use controls are at least in part responsible for high housing prices.<ref name="Glaeser_Impact">Edward L. Glaeser, Joseph Gyourko. [http://www.nber.org/papers/w8835.pdf?new_window=1 "The Impact of Zoning on Housing Affordability"] (pdf, [http://www.nber.org/papers/w8835 abstract]), ''National Bureau of Economic Research'', March 2002. Referenced 2012-12-04.</ref><ref name="Glaeser_Why">Edward L. Glaeser, Joseph Gyourko and Raven E. Saks. [http://www.economics.harvard.edu/pub/hier/2005/HIER2061.pdf "Why Have Housing Prices Gone Up?"] (pdf), ''Harvard Institute of Economic Research'', Discussion Paper Number 2061, February 2005. Referenced 2012-12-04.</ref><ref name="Fischel_zoning">Fischel, W. A. 1985. "The economics of zoning laws: A property rights approach to American land use controls." Baltimore: Johns Hopkins Univ. Press. See [http://books.google.de/books?id=wlKAfvuP59EC&printsec=frontcover#v=onepage&q&f=false preview]. Referenced 2012-12-04.</ref><ref name="Rothwell_Effects">Jonathan T Rothwell. [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1154146 "The Effects of Density Regulation on Metropolitan Housing Markets"] (abstract, [https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1414419_code1058412.pdf?abstractid=1154146&mirid=1 [pdf]), June 4, 2009. Referenced 2012-12-04.</ref>
Several studies suggest that zoning, and other land use controls are at least in part responsible for high housing prices.<ref name="Glaeser_Impact">Edward L. Glaeser, Joseph Gyourko. [http://www.nber.org/papers/w8835.pdf?new_window=1 "The Impact of Zoning on Housing Affordability"] (pdf, [http://www.nber.org/papers/w8835 abstract]), ''National Bureau of Economic Research'', March 2002. Referenced 2012-12-04.</ref><ref name="Glaeser_Why">Edward L. Glaeser, Joseph Gyourko and Raven E. Saks. [http://www.economics.harvard.edu/pub/hier/2005/HIER2061.pdf "Why Have Housing Prices Gone Up?"] (pdf), ''Harvard Institute of Economic Research'', Discussion Paper Number 2061, February 2005. Referenced 2012-12-04.</ref><ref name="Fischel_zoning">Fischel, W. A. 1985. "The economics of zoning laws: A property rights approach to American land use controls." Baltimore: Johns Hopkins Univ. Press. See [http://books.google.de/books?id=wlKAfvuP59EC&printsec=frontcover#v=onepage&q&f=false preview]. Referenced 2012-12-04.</ref><ref name="Rothwell_Effects">Jonathan T Rothwell. [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1154146 "The Effects of Density Regulation on Metropolitan Housing Markets"] (abstract, [https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1414419_code1058412.pdf?abstractid=1154146&mirid=1 [pdf]), June 4, 2009. Referenced 2012-12-04.</ref>


===Effects on communities and businesses===
Other studies have argued that by reducing opportunities for affordable housing, households of modest means are excluded, resulting in increased racial segregation.<ref name="Rothwell_Density">Jonathan Rothwell, Douglas S. Massey. [http://www.thecyberhood.net/documents/papers/uar09.pdf "The Effect of Density Zoning on Racial Segregation in U.S. Urban Areas"] (pdf), ''Princeton University'', New Jersey, July 2009. Referenced 2012-12-04.</ref>
Other studies have argued that by reducing opportunities for affordable housing, households of modest means are excluded, resulting in increased racial segregation.<ref name="Rothwell_Density">Jonathan Rothwell, Douglas S. Massey. [http://www.thecyberhood.net/documents/papers/uar09.pdf "The Effect of Density Zoning on Racial Segregation in U.S. Urban Areas"] (pdf), ''Princeton University'', New Jersey, July 2009. Referenced 2012-12-04.</ref>
Zoning laws force people to have their business only in certain locations. This drives up the price of property for businesses, making it harder to start a new business. The result is that big business is favored over upstarts. Walmart and Home Depot can afford to buy as much commercial land as they need to build a store. And they don't have to worry about a bunch of people selling similar items locally. This makes it even more difficult for the poor to get out of their poverty.<ref name="Camplin_Zoning">Troy Camplin. [https://mises.org/daily/4264 "Zoning Laws Destroy Communities"], ''Mises Daily'', April 30, 2010. Referenced 2012-12-04.</ref>


===Emergency situations===
===Emergency situations===
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==Links==
==Links==
* [https://mises.org/media/6657/Zoning-and-the-Free-Market Zoning and the Free Market] (audio) by Walter Block, October 2011
* [https://21stcenturyurbansolutions.files.wordpress.com/2009/04/houston-deregulation-paper1.pdf Houston and Deregulation] (pdf) by Daniel Jacobson, December 2008
* [https://21stcenturyurbansolutions.files.wordpress.com/2009/04/houston-deregulation-paper1.pdf Houston and Deregulation] (pdf) by Daniel Jacobson, December 2008
* {{wplink}}
* {{wplink}}

Revision as of 14:36, 4 December 2012

Zoning (especially in city planning) is the division of an area into zones, to restrict the number and types of buildings and their uses, also known as zoning laws.[1]

Criticisms

High prices

Several studies suggest that zoning, and other land use controls are at least in part responsible for high housing prices.[2][3][4][5]

Effects on communities and businesses

Other studies have argued that by reducing opportunities for affordable housing, households of modest means are excluded, resulting in increased racial segregation.[6]

Zoning laws force people to have their business only in certain locations. This drives up the price of property for businesses, making it harder to start a new business. The result is that big business is favored over upstarts. Walmart and Home Depot can afford to buy as much commercial land as they need to build a store. And they don't have to worry about a bunch of people selling similar items locally. This makes it even more difficult for the poor to get out of their poverty.[7]

Emergency situations

Marc Scribner argued that zoning laws have also impact in emergency situations. In the aftermath of the 2005 Hurricane Katrina, much of New Orleans and many coastal communities in Louisiana and Mississippi remained under water for weeks. Approximately 240,000 evacuees fled to the nearest largely unscathed major city: Houston. Houston lacked many of the zoning and land-use regulations common in most other urban areas. This peculiarity greatly assisted Houston's ability to absorb the thousands of Gulf Coast evacuees.

Thanks to the city's liberal land-use policies, Houston enjoyed lower real estate prices, increased availability of affordable housing, lower population concentration and more opportunities for entrepreneurs.

Zoning laws had put up artificial roadblocks to the construction of affordable rental units during the preceding decades in communities along the Gulf Coast. This made homelessness even worse for low- to moderate-income residents after Katrina and Rita made landfall. Houston's liberal land-use regulations and thus its enhanced ability to absorb new residents helped mitigate many of the problems often associated with a massive influx of refugees.

In Louisiana and Mississippi, emergency temporary housing was zoned out of many of the worst-hit areas, even as local politicians accused the Federal Emergency Management Agency (FEMA) of mismanagement. Local officials refused to ease existing restrictions and ratcheted up land-use and building regulations. Supporters of these stronger measures claimed that they would help prevent the same level of destruction in the future, but the short-term consequences were dire for those hardest hit.[8]

References

  1. "Zoning", Dictionary.com, referenced 2012-12-04.
  2. Edward L. Glaeser, Joseph Gyourko. "The Impact of Zoning on Housing Affordability" (pdf, abstract), National Bureau of Economic Research, March 2002. Referenced 2012-12-04.
  3. Edward L. Glaeser, Joseph Gyourko and Raven E. Saks. "Why Have Housing Prices Gone Up?" (pdf), Harvard Institute of Economic Research, Discussion Paper Number 2061, February 2005. Referenced 2012-12-04.
  4. Fischel, W. A. 1985. "The economics of zoning laws: A property rights approach to American land use controls." Baltimore: Johns Hopkins Univ. Press. See preview. Referenced 2012-12-04.
  5. Jonathan T Rothwell. "The Effects of Density Regulation on Metropolitan Housing Markets" (abstract, [pdf), June 4, 2009. Referenced 2012-12-04.
  6. Jonathan Rothwell, Douglas S. Massey. "The Effect of Density Zoning on Racial Segregation in U.S. Urban Areas" (pdf), Princeton University, New Jersey, July 2009. Referenced 2012-12-04.
  7. Troy Camplin. "Zoning Laws Destroy Communities", Mises Daily, April 30, 2010. Referenced 2012-12-04.
  8. Marc Scribner. "Hurricane Katrina, Houston And The Humanitarian Case Against Zoning", Forbes, 08.31.10. Referenced 2012-12-04.

Links