New Index Estimates New House Cost Impact of Land Regulation

Demographia Residential Land & Regulation Cost Index

Our first annual Demographia Residential Land & Regulation Cost Index estimates the price of land and regulation for new entry level houses compared to the historic norm in 11 metropolitan regions (Note 1). Metropolitan regions in which land and regulation costs remain at or below normal have an Index of 1.0 while those with land and regulation costs above normal will have an Index above 1.0 (Figure 1).

More restrictive land use regulation is variously referred to as “smart growth,” “growth management” and other terms. More restrictive land use regulation is estimated to have added from nearly $30,000 (in Minneapolis-St. Paul) to more than $220,000 (In San Diego) to the price of a new home.

More at: http://www.newgeography.com/content/001841-new-index-estimates-new-house-cost-impact-land-regulation

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