The Effects of High-density Zoning on Multifamily Housing Construction in the Suburbs of Six US Metropolitan Areas

This paper presents an empirical analysis of the effects of high-density zoning on multifamily housing construction from 1990 to 2000 in the suburbs of six US metropolitan areas. Zoning constraints are measured as the total number of high-density units allowed by right in each suburban jurisdiction obtained from local zoning ordinances and geographical information data. Using two-stage least squares, the analysis provides two important results: zoning as practised by suburban governments in the six metropolitan areas limits the construction of multifamily housing below market determined levels; and, multifamily zoning constraints are not exogenous but vary systematically with distance from the central city and with the racial composition of the community in 1960.