Zoning and the Exercise of Monopoly Power: A Reevaluation
One reason for excessive zoning restrictions is said to be the desire of existing residents to raise the value of their homes. This strategy will be more successful if their community controls a large fraction of the land in a metropolitan area. This study critically examines this “monopoly zoning” hypothesis in a property rights framework. A re-examination of current empirical evidence for monopoly zoning and an additional study cast some doubt on the existence of such motivations.