Local Land Use Regulatory Regimes and Residential Development Outcomes: An Analysis of Subdivision Review in Four Counties in the DC Region

Land use regulations affect housing prices, with more restrictive regulatory environments associated with higher prices. Yet, regulations are only a part of the regulatory regime in which land use decisions are made, leading to the question: how do land use regulatory regimes affect housing prices? This study examines and compares the land use regulatory regimes of four counties, Frederick, MD, Montgomery, MD, Fairfax, VA, and Loudoun, VA through interviews, project files, and regulatory review to learn how the combination of structures, rules, norms, principles, and expectations, relate to housing prices. State differences in the tools available lead to Virginia counties having a more predictable, but not faster, subdivision review process than Maryland counties. More importantly, local differences in developer contributions for mitigating the impact of development, community involvement, and perspectives on development affect the cost and predictability of the residential development review process. These jurisdictional differences support the need to focus research on regulatory regimes rather than simply regulations to identify changes to reduce unnecessary costs that increase house prices