Height limits raise housing prices
11 hours ago
- #housing-crisis
- #urban-development
- #zoning-laws
- Height restrictions in U.S. cities raise housing prices by limiting development.
- Construction costs spike at 4 and 8 stories due to system upgrades (elevators, fire pumps, electrical).
- Land costs influence building height: single-family for cheap land, mid-rise for average rent, high-rise for expensive rent.
- Developers often avoid 8–11 stories due to high costs, preferring 7 or 12+ stories where viable.
- Height restrictions below 12 stories often result in 7-story buildings, even if taller is preferred.
- In 34 of the largest U.S. cities, developers prefer buildings at least 7 stories tall in most zip codes.
- A 4-story height limit could reduce housing square footage by 42.9% (vs. 7 stories) or 300% (vs. 12 stories).
- Binding height limits increase break-even rents, leading to higher tenant rents.
- Removing height restrictions could help cities meet housing demand, though growth must be managed carefully.