The effects of zoning on structure and land markets

Zoning takes three general forms: constraints on density, lot size, and allowable use. This paper demonstrates that the three restrictions differ in their effects on structure and land markets. Density zoning is equivalent to a monopoly restriction that can be used to raise all land values. Allowable use restrictions affect land values differentially. Large-lot restrictions affect the price for housing paid by individual households differentially. Considering externalities does not alter these basic differences. The implications for empirical studies of zoning are discussed.