[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/osf/osfxxx/d3mt6.html
   My bibliography  Save this paper

Pricing upzoning: A reply to critics

Author

Listed:
  • Murray, Cameron

    (The University of Sydney)

  • Gordon, Josh
Abstract
We thank the four respondents to our article, who have provided a range of insights into the debate around upzoning. To organize this reply, we first restate our main arguments below, and then summarize our responses to the main criticisms advanced by the four respondents. In our article, we made the following arguments: a) Upzoning provides additional property rights to current property owners, akin to providing them with “airspace” rights. b) These rights have a market value that could be priced. c) Unpriced upzoning has a budgetary cost due to this foregone revenue. d) The initial allocation of residential property rights in most countries is highly unequal, and thus unpriced upzoning will accrue to current property owners, exacerbating inequality. e) The alleged housing benefits from upzoning rely primarily on the idea that it will significantly increase the rate of supply, and thereby lower house prices and rents for non-owners. However, this claim is questionable, and existing evidence suggests it will not occur. f) There are many effective policies to price upzoning or otherwise achieve public benefit from upzoning, and these should be undertaken. The respondents agreed with many main points. For example, there was broad agreement that the value of upzoning rights can be large and that this represents an opportunity to generate public value. All the respondents also recognized that policies exist that are feasible to capture this value, even if there is disagreement on which, if any, should be adopted.

Suggested Citation

  • Murray, Cameron & Gordon, Josh, 2023. "Pricing upzoning: A reply to critics," OSF Preprints d3mt6, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:d3mt6
    DOI: 10.31219/osf.io/d3mt6
    as

    Download full text from publisher

    File URL: https://osf.io/download/651f4f5c5b185600247a9f60/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/d3mt6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Greenaway-McGrevy, Ryan & Phillips, Peter C.B., 2023. "The impact of upzoning on housing construction in Auckland," Journal of Urban Economics, Elsevier, vol. 136(C).
    2. Murray, Cameron K., 2020. "Time is money: How landbanking constrains housing supply," Journal of Housing Economics, Elsevier, vol. 49(C).
    3. Murray, Cameron & Phibbs, Peter, 2022. "Evidence-lite zone: The weak evidence behind the economic case against planning regulation," OSF Preprints 69m23, Center for Open Science.
    4. Titman, Sheridan, 1985. "Urban Land Prices under Uncertainty," American Economic Review, American Economic Association, vol. 75(3), pages 505-514, June.
    5. Cameron K. Murray, 2022. "A Housing Supply Absorption Rate Equation," The Journal of Real Estate Finance and Economics, Springer, vol. 64(2), pages 228-246, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lönnroth, Tea & Krigsholm, Pauliina & Falkenbach, Heidi & Oikarinen, Elias, 2024. "Advancing understanding of the linkages between local land policy interventions and the responsiveness of housing supply: Intervention mechanisms in the Finnish context," Land Use Policy, Elsevier, vol. 141(C).
    2. Cameron K. Murray, 2022. "A Housing Supply Absorption Rate Equation," The Journal of Real Estate Finance and Economics, Springer, vol. 64(2), pages 228-246, February.
    3. Lange, Rutger-Jan & Teulings, Coen N., 2024. "Irreversible investment under predictable growth: Why land stays vacant when housing demand is booming," Journal of Economic Theory, Elsevier, vol. 215(C).
    4. Murray, Cameron, 2019. "The Australian housing supply myth," OSF Preprints r925z, Center for Open Science.
    5. Murray, Cameron, 2020. "A housing supply absorption rate equation," OSF Preprints 7n8rj, Center for Open Science.
    6. Graeme Guthrie, 2023. "Land Hoarding and Urban Development," The Journal of Real Estate Finance and Economics, Springer, vol. 67(4), pages 753-793, November.
    7. Murray, Cameron & Phibbs, Peter, 2022. "Evidence-lite zone: The weak evidence behind the economic case against planning regulation," OSF Preprints 69m23, Center for Open Science.
    8. Murray, Cameron, 2022. "What’s the rush? New housing market absorption rate metrics and the incentive to slow housing supply," OSF Preprints xscg5, Center for Open Science.
    9. Alan W. Evans, 1996. "The Impact of Land Use Planning and Tax Subsidies on the Supply and Price of Housing in Britain: A Comment," Urban Studies, Urban Studies Journal Limited, vol. 33(3), pages 581-585, April.
    10. Hilber, Christian A.L., 2010. "New housing supply and the dilution of social capital," Journal of Urban Economics, Elsevier, vol. 67(3), pages 419-437, May.
    11. Joseph Gyourko & Richard Voith, 1993. "Leasing as a Lottery: Implications for Rational Building Surges and Increasing Vacancies," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 21(1), pages 83-106, March.
    12. Hahn, Robert & Evans, Lewis, 2010. "Regulating Dynamic Markets: Progress in Theory and Practice," Working Paper Series 4052, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    13. Miao, Jianjun & Wang, Neng, 2007. "Investment, consumption, and hedging under incomplete markets," Journal of Financial Economics, Elsevier, vol. 86(3), pages 608-642, December.
    14. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.
    15. Alan Sage & Mike Langen & Alex van de Minne, 2023. "Where is the opportunity in opportunity zones?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(2), pages 338-371, March.
    16. John Clapp & Piet Eichholtz & Thies Lindenthal, 2012. "Real Option Value over a Housing Market Cycle: West Berlin," ERSA conference papers ersa12p264, European Regional Science Association.
    17. Murray, Cameron & Limb, Mark, 2020. "We zoned for density and got higher house prices: Supply and price effects of upzoning over 20 years," OSF Preprints zkt7v, Center for Open Science.
    18. Lim, Terence & Lo, Andrew W. & Merton, Robert C. & Scholes, Myron S., 2006. "The Derivatives Sourcebook," Foundations and Trends(R) in Finance, now publishers, vol. 1(5–6), pages 365-572, April.
    19. Tirthatanmoy Das & Kabir Dasgupta, 2018. "Evaluating the Impact of Mothers' Self-esteem on Early Childhood Home Environment: Evidence from NLSY," Working Papers 2018-03 JEL Classificatio, Auckland University of Technology, Department of Economics, revised Oct 2019.
    20. Cameron K. Murray, 2016. "Developers pay developer charges," Discussion Papers Series 567, School of Economics, University of Queensland, Australia.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:osfxxx:d3mt6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://osf.io/preprints/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.