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The effect of zoning laws on housing prices and BAH rates

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Author
Fitzkee, William
Date
2014-12
Advisor
Henderson, David
Menichini, Amilcar
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Abstract
This thesis is an analysis of the effect of zoning laws and regulations on the price of residential housing. Economists Edward Glaeser and Joseph Gyourko have completed significant work on this topic. Their efforts have focused on the correlation of high housing prices with zoning laws and other land-use controls, but stop short of estimating the impact of zoning laws on actual housing prices in specific markets. This thesis expands on their research and estimates what residential housing prices would be without the regulations. It also estimates the deadweight loss (DWL) caused by the zoning laws in various high-cost markets. The results show significant price reductions from both complete and partial elimination of zoning restrictions. This thesis also uses these estimates to calculate the impact of the zoning laws on Basic Allowance for Housing (BAH) in the markets analyzed. Estimated BAH rates with zoning reduced or eliminated were substantially lower in many of the high-cost housing markets studied.
Description
MBA Professional Report
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
URI
http://hdl.handle.net/10945/44560
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  • 1. Thesis and Dissertation Collection, all items
  • 2. NPS Outstanding Theses and Dissertations
  • 7. Master of Business Administration (MBA) Professional Projects

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