Reality check – the impact of land zoning

Author:
David Norman
Source:
Auckland Council Chief Economist
Publication date:
2017

- Recent coverage has focused on how land use zoning may affect property prices.

- Often, these analyses don’t consider a number of factors, meaning they likely overestimate possible costs of regulation in Auckland.

- The progressive Unitary Plan, the difference between land supply and housing supply, and the costs of turning farm land into developed land are three factors that are often neglected.

Claims of how land use regulation, or land zoning, is impacting land values have received a lot of coverage recently.

There is little doubt that excessive land use regulation artificially raises the price of land. That’s a fundamental of the demand and supply equation and is hard to deny. Councils, who set land use policy, should always consider whether they’re being overly-restrictive with zoning, or any other policy for that matter.

But on at least three counts, recent coverage has failed to consider factors that hugely impact the conclusions reached.

Insights. Topical commentary on the Auckland economy

August 2017

Last updated: 2017-08-09