The interaction of building codes and housing prices
EM Noam - Real Estate Economics, 1982 - Wiley Online Library
The study analyzes the effect of restrictive building codes on the price of housing, and the
simultaneous impact of housing values on the strictness of codes. A model is defined and
estimated, using data for more than 1100 localities. The results show that strict codes raised
housing values, in 1970, by about one thousand dollars. They furthermore show that the
strictness of codes is in turn affected by housing values, as well as by the strength of
construction unions. Homeowners and construction unions are thus both observed to gain …
simultaneous impact of housing values on the strictness of codes. A model is defined and
estimated, using data for more than 1100 localities. The results show that strict codes raised
housing values, in 1970, by about one thousand dollars. They furthermore show that the
strictness of codes is in turn affected by housing values, as well as by the strength of
construction unions. Homeowners and construction unions are thus both observed to gain …