2024/08/23 by Simon Büchler, Elena Lutz · 1 voice
Economics, Econometrics and Finance · Social Sciences · #Housing Market and Economics #Housing, Finance, and Neoliberalism #Urban, Neighborhood, and Segregation Studies
paper · doi:10.1016/j.jue.2024.103689
openalex publication_date 2024/08/23 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/23
This paper examines the effects of relaxing land-use regulations on housing supply and rents at the local intra-city level. We apply a staggered difference-in-difference model, exploiting exogenous differences in the treatment timing of zoning plan reforms as identifying variation. Increasing the allowable floor-to-area ratio (FAR), i.e., upzoning, significantly increases the living space and housing units by approximately 9% in the subsequent five to ten years. This effect is stronger for larger upzonings, for rasters where zoning is binding, and where rents are high. Furthermore, upzoning leads to no difference in hedonic rents between upzoned and later-upzoned rasters. These results show that upzoning is a viable policy for increasing housing affordability. However, the effects depend on the upzoning policy design and take several years to materialize.