Supply Constraints and Housing Prices

Saku Aura and Thomas Davidoff ()

No 1738, CESifo Working Paper Series from CESifo

Abstract: This paper analyzes the effects of land use constraints on housing prices. We provide a new framework for evaluating policy when mobility across regions is allowed but limited. A key result is that loosening regulatory constraints within individual regions would have little effect on prices for plausible parameterizations. For example, we show reasonable conditions under which, even if every building in Manhattan were 100 stories tall, prices would fall by less than 15 percent.

Keywords: housing supply and markets; regulatory policies; land use patterns (search for similar items in EconPapers)
JEL-codes: R14 R21 R38 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Supply constraints and housing prices (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1738

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