2026/07/20 by Anthony M. Yezer
Economics, Econometrics and Finance · Environmental Science · #Housing Market and Economics #Regional Economics and Spatial Analysis #Urban Planning and Valuation
paper · doi:10.1111/jors.70083
ABSTRACT Previous theoretical analysis using classical urban models suggests that planning or topographic restrictions on structure density raise the price of housing in cities. This paper demonstrates that these past results are an artifact of special assumptions about the spatial distribution of planning or topographic restrictions. When alternative and more realistic regulations are examined using either classical or neoclassical models, the average housing price falls compared to laissez faire in the absence of amenity benefits. The standard empirical finding that housing prices rise with regulation implies that planning raises urban amenity. This illustrates the importance of the specific spatial distribution of land use and topographic restrictions and of amenity effects in research on the implications of urban development policies.