The impact of upzoning on housing construction in Auckland*
There is a growing debate about whether upzoning is an effective policy response to housing shortages and unaffordable housing. This paper provides empirical evidence to further inform debate by examining the various impacts of recently implemented zoning reforms on housing construction in Auckland,...
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sg-smu-ink.soe_research-37012023-12-12T08:41:49Z The impact of upzoning on housing construction in Auckland* Greenaway-McGrevy, Ryan PHILLIPS, Peter C. B. There is a growing debate about whether upzoning is an effective policy response to housing shortages and unaffordable housing. This paper provides empirical evidence to further inform debate by examining the various impacts of recently implemented zoning reforms on housing construction in Auckland, the largest metropolitan area in New Zealand. In 2016, the city upzoned approximately three quarters of its residential land to facilitate construction of more intensive housing. We use a quasi-experimental approach to analyze the short-run impacts of the reform on construction, allowing for potential shifts in construction from non-upzoned to upzoned areas (displacement effects) that would, if unaccounted for, lead to an overestimation of treatment effects. We find strong evidence that upzoning stimulated construction. Treatment effects remain statistically significant even under implausibly large displacement effects that would necessitate more than a four-fold increase in the trend rate of construction in control areas under the counterfactual of no-upzoning. Our findings support the argument that upzoning can stimulate housing supply and suggest that further work to identify factors that mediate the efficacy of upzoning in achieving wider objectives of the policy would assist policymakers in the design of zoning reforms in the future. 2023-07-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/2702 info:doi/10.1016/j.jue.2023.103555 https://ink.library.smu.edu.sg/context/soe_research/article/3701/viewcontent/ImpactUpzoningHousing_Auckland_sv.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Upzoning Land use regulations Redevelopment Housing construction Housing affordability Spillovers Behavioral Economics Econometrics Real Estate |
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Upzoning Land use regulations Redevelopment Housing construction Housing affordability Spillovers Behavioral Economics Econometrics Real Estate Greenaway-McGrevy, Ryan PHILLIPS, Peter C. B. The impact of upzoning on housing construction in Auckland* |
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There is a growing debate about whether upzoning is an effective policy response to housing shortages and unaffordable housing. This paper provides empirical evidence to further inform debate by examining the various impacts of recently implemented zoning reforms on housing construction in Auckland, the largest metropolitan area in New Zealand. In 2016, the city upzoned approximately three quarters of its residential land to facilitate construction of more intensive housing. We use a quasi-experimental approach to analyze the short-run impacts of the reform on construction, allowing for potential shifts in construction from non-upzoned to upzoned areas (displacement effects) that would, if unaccounted for, lead to an overestimation of treatment effects. We find strong evidence that upzoning stimulated construction. Treatment effects remain statistically significant even under implausibly large displacement effects that would necessitate more than a four-fold increase in the trend rate of construction in control areas under the counterfactual of no-upzoning. Our findings support the argument that upzoning can stimulate housing supply and suggest that further work to identify factors that mediate the efficacy of upzoning in achieving wider objectives of the policy would assist policymakers in the design of zoning reforms in the future. |
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text |
author |
Greenaway-McGrevy, Ryan PHILLIPS, Peter C. B. |
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Greenaway-McGrevy, Ryan PHILLIPS, Peter C. B. |
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Greenaway-McGrevy, Ryan |
title |
The impact of upzoning on housing construction in Auckland* |
title_short |
The impact of upzoning on housing construction in Auckland* |
title_full |
The impact of upzoning on housing construction in Auckland* |
title_fullStr |
The impact of upzoning on housing construction in Auckland* |
title_full_unstemmed |
The impact of upzoning on housing construction in Auckland* |
title_sort |
impact of upzoning on housing construction in auckland* |
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Institutional Knowledge at Singapore Management University |
publishDate |
2023 |
url |
https://ink.library.smu.edu.sg/soe_research/2702 https://ink.library.smu.edu.sg/context/soe_research/article/3701/viewcontent/ImpactUpzoningHousing_Auckland_sv.pdf |
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