Over the past decade, there has been significant volatility in the housing market. During the first half of the decade, housing prices increased at an unprecedented rate and homeownership rates reached an all time high. With an unrelenting demand for housing, many multifamily rental units were converted to condominiums and the overall stock of rental units decreased substantially. With the price of rental housing increasing and incomes remaining stagnant, many low- and moderate-income households found themselves struggling to maintain an adequate standard of living. This was magnified during the second half of the decade when the housing and financial credit markets crashed, leading to a parade of foreclosures and ultimately forcing millions of households into the rental housing market. During this same time period, government land-use regulations have increasingly become more restrictive. In theory, government-imposed land use regulations place constraints on how land can be utilized, which limits supply and increases costs. As a result, the cost of housing will increase, placing unnecessary burdens on low- and moderate-income households. Composed of three essays, this dissertation addresses various aspects of how increased regulation affects housing markets.
In the first essay, I review the historical evolution of land use regulations with an emphasis on the regulatory environment in the state of Florida. An exhaustive review of the empirical literature describing the effects of land-use regulations on the housing market and the rental housing market is provided. While variations in magnitude exist, the majority of empirical studies find that increased land use regulations increase housing prices.
The second essay of this dissertation focuses on the determinants of the rental housing market, attempting to examine how the percentage of income a household allocates to rent changes as a result of increased land use regulations. A description of the data used to access the regulatory environment is presented. The regulatory data is then quantified, using four unique econometric methods, and is used to estimate the relationship between the percentage of income that a household spends on rental housing and land use regulations. Results from the empirical models indicate that, consistent with theory, the rent-to-income ratio for renter households increases with more stringent land use regulations.
The third essay investigates the relationship between land use regulations and high-risk loan originations. In order to motivate the empirical analysis, a review of the descriptive and empirical literature surrounding the determinants of subprime lending, the relationship between subprime loans and mortgage default, and housing supply elasticities is presented. After reviewing aggregate trends in income, home prices, loan installments, and foreclosure rates, I lay out the empirical model. The model is then estimated using regulatory and loan data from Jurisdictions in the state of Florida. The empirical model finds that increased regulations may lead to a higher percentage of high risk loan originations.
The final chapter of this dissertation concludes and offers suggestions for future research.
|Advisor:||Ihlandfeldt, Keith R.|
|Commitee:||Feiock, Richard C., Holcombe, Randall G., Zeuhlke, Thomas W.|
|School:||The Florida State University|
|School Location:||United States -- Florida|
|Source:||DAI-A 74/02(E), Dissertation Abstracts International|
|Subjects:||Economics, Public administration, Urban planning|
|Keywords:||Housing, Land use, Land use regulations, Regulation, Rent burdened|
Copyright in each Dissertation and Thesis is retained by the author. All Rights Reserved
The supplemental file or files you are about to download were provided to ProQuest by the author as part of a
dissertation or thesis. The supplemental files are provided "AS IS" without warranty. ProQuest is not responsible for the
content, format or impact on the supplemental file(s) on our system. in some cases, the file type may be unknown or
may be a .exe file. We recommend caution as you open such files.
Copyright of the original materials contained in the supplemental file is retained by the author and your access to the
supplemental files is subject to the ProQuest Terms and Conditions of use.
Depending on the size of the file(s) you are downloading, the system may take some time to download them. Please be