Comments on: How Restrictive Zoning Creates Housing Bubbles?

By: Anonymous

Anonymous — Wed, 10 Jun 2009 22:23:38 +0000

Zoning is always designed to jack up property values to keep city officials in office. The best way to lose a mayoral election is to either nike zoning laws or to jack up the property tax multiplier. Strict zoning means a need for variances so developers contribute to campaigns of incumbents and not raising the multiplier keeps the votes coming.

We would need a federal law banning or greatly simplifying zoning – but over time you’ll end up with arcane FEDERAL zoning laws! Just look at EPA eco-”zoning” now. If you are a non-homeowner now, either hit the lotto or forget about it.

By: Daniel Bates

Daniel Bates — Wed, 20 Feb 2008 00:53:03 +0000

Maybe people just don’t want to live where developers are allowed to run rampant and do whatever they want and thus the demand (and higher price) for restrictive zoning areas.

By: Tom

Tom — Tue, 19 Feb 2008 20:04:12 +0000

Ellen

Are you sure? It would make sense that zoning restrictions limits supply and ability to use a scarce resource. Once that occurs the price goes up. If the price goes up beyond the ability of people to pay then it must correct. Thus the bubble.

Now there are more factors in play, but the reality is that restrictive zoning plays an intergral part in property values.

By: Ellen A

Ellen A — Tue, 19 Feb 2008 19:59:51 +0000

This is nonsense. Restrictive zoning is a response to the rapacious behavior of developers who overwhelm communities with traffic and environmental impacts.