Exploring the Impacts of Ballot Box Land Use Measures on Affordable Housing

Abstract

Throughout the U.S., increasing land use regulation via ballot box measures is being addressed. It appears that ballot box land use measures to pass land use regulation change can lead to delays in the land development process. These delays have been found to increase transaction costs, cause uncertainty in the development process, and lead to a reduction in the number of new single-unit homes being constructed. One of the major concerns is that this restriction in supply will lead to increased housing prices in communities, negatively impacting affordable housing by placing it beyond obtainable levels of affordability. In this study, the context of ballot box measures as land use regulation was reviewed, and projections of economic impact of potential land use regulation change were presented. Using Florida as the case in point, projected impacts included home buyers having to earn $3,000 to $12,000 more per year to qualify for higher housing prices due to increased regulation. In areas of the U.S. experiencing severe affordable housing shortages such as Florida, a concerted effort may be needed to maintain land development balance and thus allow affordable housing to be adequately supplied.