Is Planning Delay Really a Constraint in the Provision of Housing? Some Evidence from Israel

Citation:

Rubin, Ziv, and Daniel Felsenstein. 2019. “Is Planning Delay Really a Constraint in the Provision of Housing? Some Evidence from Israel”. Papers in Regional Science 98 (5):2179-2200.
Is Planning Delay Really a Constraint in the Provision of Housing? Some Evidence from Israel

Abstract:

This paper revisits the claim that a causal link exists between the inflexibility of land‐use planning and low elasticity of housing supply. A theoretical model of factors impacting district‐level planning is presented alongside a model of the impact of planning delay on housing supply. The models are estimated for the Tel Aviv district using detailed data covering a 12‐year period. Results show significant impacts on planning delay due to plan, municipality and district planning commission characteristics. House prices exert a positive effect on planning speed and municipal funding acts as a supply constraint. While planning delay does not impact housing supply, delay uncertainty has a negative impact and acts as a constraint.

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Last updated on 08/20/2020