Lower Density Contributes to Real Estate Bubbles?

So alleges recent research on the issue. Matthew Yglesias reports on the latest findings by Haifang Huang and Yao Tang (PDF) “Residential Land Use Regulation and the US Housing Price Cycle Between 2000 and 2009″ on his blog. He cites this from the research —

In a sample covering more than 300 cities in the US between January 2000 and July 2009, we find that more restrictive residential land use regulations and geographic land constraints are linked to larger booms and busts in housing prices.

This provides some food for thought about the way land-use planning is regulated within our nation. Standard planning — one that relies on outdated zoning laws  — favors low-density design. Yet, as is suggested here, this may not be good for the economy.

About Beata Bujalska

Beata Bujalska is the former Campaign Coordinator for Renew Lehigh Valley. She currently lives in Panama, a place that fascinates her due to (among other reasons) its recent development boom.

Posted on July 29, 2010, in Housing, Trends and tagged , . Bookmark the permalink. Leave a comment.

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