The Market Effects of Zoning and the Consistency Doctrine in King County, Washington.

This study examines the market effects of zone regulation of vacant l and parcels sales in King County, Washington and the degree of consistency that exists between the King County Council's zone choice decisions and the policy goals and objectives of the King County Comprehensive Plan 1964. In the first stage of the analysis zoning constraints on density, minimum lot size, and allowable use are introduced into a competitive model of urban l and markets. The theoretical model indicates that combined forms of zoning constraints would be expected to affect vacant l and market prices, however, a priori, it is not possible to demonstrate that zoning-constrained l and markets would lead to maximum aggregate l and values for a jurisdiction. The statistical procedure applies recently developed mixed continuous/discrete estimating techniques. These techniques permit tests for sample selection bias caused by the joint determination of the King County Council zone choices for parcels (a discrete response) and the market determined price of vacant King County l and parcels (a generally continuous response). The estimation procedure corrects for sample bias so that statistically consistent estimates of parcel dem and equations are obtained. Estimation results indicate that estimable decision-rules are exercised by the King County Council in their parcel zone determinations. That the structure of these decision-rules was derived from the goals and objectives of the comprehensive plan suggests that the m and ate of the King County Zoning Code, requiring consistency between the zoning ordinances and the comprehensive plan, has largely been achieved by King County zoning regulation. The estimation of the dem and equations for zoned parcel price indicates that zoning per se does have a market effect on l and values and that the effect is generally consistent with a priori expectations. The results were inconclusive as to whether King County sought to maximize aggregate l and values by means of its zoning controls. The zoning controls may, however, serve to maximize single family l and value.PhDEconomicsUniversity of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/159102/1/8225065.pd