Real estate marketplace Zillow recently analyzed the relationships between land-use regulations and the change in median rents, housing inventory and the number of adults per household. The study used data from Wharton Residential Land Use Regulation Index, the U.S. Census, and Zillow’s rent & inventory data.
“In many American cities, more means more – and not in a particularly good way. More tightly regulated land use in these cities is associated with more rapidly rising rents, more acute shortages of homes for sale and more adults living with roommates in the face of rising housing costs and fewer housing options.”
Key takeaways:
- Rents in cities with the most-restrictive land use regulations grew almost three times as quickly as in cities with the least-restrictive regulations.
- More-regulated cities experienced a larger drop in inventory than less-regulated cities.
- Tightly regulated cities with higher rents and lower inventory have more adults living with roommates.
