How Much Do Zoning Regulations Add to Land Cost? Added Cost per Quarter Acre Lot, For Selected U.S. Metro Areas*
Boston Miami Phoenix Atlanta Denver Orlando Nashville Charlotte Dallas
Certainly a major factor in the amount, and ultimately the cost, of new construction in a metro area is the quantity of land available to develop, land cost, and the cost of development. This chart looks at additional building costs pertaining to zoning regulations. Metro areas at the low-cost end of the scale are typically in states with the highest rate of new home construction. And vice versa. “Metro areas” typically cover much larger, multi-county regions than just the cities they are named for. For example, the San Francisco metro area consists of 5 Bay Area Counties. The New York metro area includes 15 counties across 2 states.
San Francisco Los Angeles Seattle New York San Jose Philadelphia Chicago Wash. DC
$0
$50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000
*Additional cost of zoning and related restrictions per quarter acre. Data per Gyourko & Krimmel, Journal of Urban Economics, 2021, as reported by The Washington Post , “Where We Build Homes Helps Explain America’s Political Divide,” 11/24/23. Data from sources deemed reliable but not guaranteed and may contain errors. All numbers rounded and approximate.
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