RT Journal Article
SR Electronic
T1 Residential Land-Use Controls and Land Values: Zoning and Covenant Interactions
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 445
OP 457
DO 10.3368/le.83.4.445
VO 83
IS 4
A1 Carolyn A. Dehring
A1 Melissa S. Lind
YR 2007
UL http://le.uwpress.org/content/83/4/445.abstract
AB Residential land use in urban areas can be constrained by zoning or restrictive covenants. When covenants and zoning exist simultaneously, covenants can facilitate an efficient allocation of high-restriction and low-restriction residential land. However, covenants cannot remedy deadweight loss resulting from zoning that over-allocates land to high restriction use. We examine subdivided, vacant residential lot sales from two residential zones which differ in both minimum lot size and the minimum square feet of house. Our findings of a negative price effect from covenant use in the more restricted zone suggest that private restrictions are over-supplied in that zone. (JEL R14, R52)