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Measuring the impact of zoning on housing in a city
and why "zoned capacity" is a bad way to do it
This post outlines a novel methodology I constructed with the help of the team at YIMBY Melbourne (including superstars Paul Spasojevic and Jonathan O’Brien) to measure the barriers created by different levels of restrictive zoning in cities. In the absence of restrictive zoning, every home sale would be a bidding war between a potential single homeowner and people who each want to pay less to share the land by building apartments or townhouses. For instance, the new Melbourne Suburban Rail Loop master plans have a complex set of zones designed to achieve aesthetic outcomes unrelated to the area’s overall density:
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