Joe Gyourko and Ed Glaeser (two economists) have even come
up with a method of calculating the cost of zoning controls.
They compare sales prices for lots with and without houses on
them, then factor out construction costs. What's left is,
implicitly, the value of "the right to build" - that is, what
people are willing to pay to not have to go through the
land-use and permit process.
How much is that? For Philadelphia, Gyourko and Glaeser
say it averages about $2.43 per square foot - or nearly
four times the value of land alone.
That's a rough regional calculation; the numbers in the
posher Main Line townships or neighborhoods such as
Chestnut Hill could run closer to Los Angeles or New York,
where zoning adds more than $30 per square foot to
land costs.
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