Research by economists at Oregon State University shows that the state's land prices have not been impacted by its strong planning system and land-use regulations.
" A study of land values in Oregon by Oregon State University economists finds no evidence that the state's land-use regulations have caused a generalized reduction in property values.
The study, published this week by economists William Jaeger and Andrew Plantinga, examines the ways in which land-use regulations and Oregon's land-use planning system may affect property values.
Jaeger and Plantinga examined the levels and trends of land values in parts of Oregon over the past 40 years, beginning before Oregon's land-use planning system was in place. They compared land value patterns for restricted and developable lands, and compared patterns in Oregon with patterns for similar areas in Washington state, where land-use planning has only recently been enforced."
Comments
Land Use Laws and Land Prices.
In San Jose land value can be One million on one side of a road and $50,000 across where it can not be developed. Our averaged priced home is now $803,000. the result of the Urban Growth Boundary. Land Use Laws have a price that is paid by the less able.
UGBs and land rents.
Our averaged priced home is now $803,000. the result of the Urban Growth Boundary
I'd like the evidence for this statement, controlling for equilibrium rents, desirablity of the area, climate, etc. I'm sure the UGB has some effect, but all? No. Same in OR, WA, etc.
Best,
D
agree - numerous things
I think UGBs absolutely do increase land values/home prices, however, you are correct Dano that there are other factors. On the supply side, it's land use restrictions and physcial geography, on the demand side it's population and income growth, stock option and other windfall wealth, and market psychology.
One thing that concerns me about some of these studies is that they compare areas that have similarly stringent land use regs and conclude there is no effect. Why don't they compare to Dallas, Houston, etc. and control for other factors?