Economics at your fingertips  

Zoning ordinances and the housing market in developing countries: Evidence from Brazilian municipalities

Ricardo Andrade Lima () and Raul da Mota Silveira Neto

Journal of Housing Economics, 2019, vol. 46, issue C

Abstract: Due to recent urbanization and the increased population density around major Brazilian cities, the real estate market in the country has appreciated greatly. In addition to demand-related factors, mechanisms with the potential to limit the housing supply may have also affected the price increase in that market. The objective of this study is to investigate the impact of zoning ordinances (land-use regulations) on the average rental prices and the growth in the number of dwellings in Brazil. Through an intercity analysis and using identification methods that rely both on selection on observable and unobservable covariates, the set of evidence indicates that zoning ordinance is associated with an increment ranging from 5.3% to 6% in average rents, but does not affect the dwellings growth. Sensitivity analysis suggests that these results are not simply driven by unobservable confounders. Our evidence, thus, indicates that even being a usually well-intentioned policy, zoning ordinances tend to generate social costs that need to be taken into account in the analysis of the real-estate market in Brazil.

Keywords: Land use restrictions; Urban zoning; Urban development; Public policy (search for similar items in EconPapers)
JEL-codes: L51 R31 R52 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.jhe.2019.101653

Access Statistics for this article

Journal of Housing Economics is currently edited by H. O. Pollakowski

More articles in Journal of Housing Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2022-11-23
Handle: RePEc:eee:jhouse:v:46:y:2019:i:c:s1051137718302080