Impact Fees Linked to Home Costs

Impact fees are linked to rising home costs in University of Chicago study.

1 minute read

August 2, 2000, 9:30 AM PDT

By Chris Steins @planetizen


Impact fees are one-time fees imposed by municipalities upon builders when houses are first built. Proponents of impact fees claim that they compensate for marginal costs, and that the fees are absorbed by developers. The first part of this paper discusses several of the legal challenges to impact fees and their implementation in the Chicago suburbs. Next, the paper proposes a simplified economic model of a segmented housing market. Primary impact fee data from eight suburban Chicago municipalities are analyzed with multiple listing service data for sales of single family houses between 1995 and 1997. Impact fees were a statistically significant component of housing prices. The paper concludes with a discussion of the fee incidence and equity issues.

Thanks to Chris Steins

Wednesday, July 26, 2000 in Electronic Policy Network

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 14, 2025 - Diana Ionescu

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Aerial view of Albuquerque, New Mexico at sunset.

New State Study Suggests Homelessness Far Undercounted in New Mexico

An analysis of hospital visit records provided a more accurate count than the annual point-in-time count used by most agencies.

1 hour ago - Source NM

Close-up on white bike helmet lying on pavement with blurred red bike on its side in background abd black car visible behind it.

Michigan Bills Would Stiffen Penalties for Deadly Crashes

Proposed state legislation would close a ‘legal gap’ that lets drivers who kill get away with few repercussions.

2 hours ago - Wood TV 8

Muni bus on red painted bus-only lane in downtown San Francisco, California.

Report: Bus Ridership Back to 86 Percent of Pre-Covid Levels

Transit ridership around the country was up by 85 percent in all modes in 2024.

3 hours ago - Mass Transit