MIXED LAND USES, EXTERNALITIES, AND RESIDENTIAL PROPERTY VALUES: AN EMPIRICAL ANALYSIS OF THE MUNICIPAL ZONING ORDINANCE OF TUCSON, ARIZONA

Abstract

This dissertation is primarily concerned with a number of theoretical and empirical problems in the economics of land-use control. Chapter 1 sets the stage for the review of the economic literature on zoning and neighborhood externalities. This chapter concludes that there are important research issues which need to be studied, viz. the recognition of the multi-nucleated character of the contemporary urban areas, and the need to take account of both the advantages and disadvantages of proximity of single-family homes to nonresidential activities. Since economic research so far has failed to establish conclusively that neighborhood externalities affect adversely or advantageously the market value of residential properties, Chapter 2 shall discuss household behavior when confronting neighborhood externalities, with special reference to land-use externalities. The discussion suggests, among other things, that the existence of nonsingle-family land uses in a neighborhood does not necessarily tend to depress the price of single-family homes. Chapter 3 provides a data base for the research. Then, in Chapter 4 the hypothesized relationship between neighborhood externalities and residential property value is tested econometrically using aggregate data for 52 neighborhoods in the City of Tucson. The results of the estimations indicate that the value of a single-family home depends, among other things, on its physical characteristics, its accessibility to employment and shopping, and local public services. For the first time, there is statistical evidence that over the ranges studied in this research nonsingle-family land uses exert a positive influence on residential property value. These results suggest that the time has come to redirect future research or policy efforts toward viewing mixed land uses possibly as a beneficial contribution to contemporary urban development. That is, zoning ordinances could legitimately move away from a "separate facilities" philosophy to a "mixed land use" philosophy without lowering property values. Issues of accessibility and restrictions in the availability of energy resources could have much to do with the lessening importance of conventional belief in separatory land planning doctrines.