Student Corner: The Impacts of Upzoning on Property Values in NC

<p>Aerial view of neighborhood</p> <p>The Brookings Institute recently published an article detailing some of the benefits and drawbacks of the planning practice known as upzoning: the rezoning of a parcel of land from a lower allowable density to a higher one. One of the primary purposes of upzoning is increasing density, both of residential and commercial property. This post deals primarily with the practice of residential upzoning.</p> <p>The practice of zoning has been increasingly debated in public forums due to its impact on racial and socionomic equity. The Brookings article briefly details the history of exclusionary zoning, where single family homes were built on large lots in expensive areas, often pricing-out potential residents of certain demographic groups. Upzoning would seem to be a cure for the long-term impacts of these exclusionary zoning practices, and the White House’s new infrastructure plan includes economic incentives to promote changes in zoning codes to allow for more high-density development. However, questions remain about the impact of upzoning on gentrification and increased housing prices, including the Brookings finding that upzoning in New York “is positively and significantly associated with the odds of a census tract becoming whiter”. However, many of the academic conclusions on the impacts of upzoning must be caveated by the fact that they are based almost entirely on case studies in large, urban municipalities, with some of the most prominent articles in the field using Chicago, Portland, and Whitewater, Wisconsin as their areas of study. In general, however, the key conclusion from the literature is more-or-less consistent: upzoning [...]</p>