This paper analyzes the effects of zoning and restrictive covenants on single-family housing prices in and around Houston, Texas. The calculation of a hedonic price index reveals that higher prices are paid for homes in neighborhoods with either type of land-use control than for comparable houses in neighborhoods without these controls. The premiums paid for these restrictions are not statistically distinguishable, but institutional constraints on these controls may explain why both forms continue to exist and to command market premiums.
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Speyrer, J.F. The effect of land-use restrictions on market values of single-family homes in Houston. J Real Estate Finan Econ 2, 117–130 (1989). https://doi.org/10.1007/BF00159794
- High Price
- Price Index
- Housing Price
- Hedonic Price
- Institutional Constraint