Upzoning and Neighborhood Change: Evidence from Los Angeles

• In Event: The Policy and Politics of Housing Supply

Abstract

Housing affordability is a pressing challenge in the United States, with rising costs placing significant financial strain on low- and moderate-income households. In response, local governments are increasingly turning to zoning reforms to expand housing supply. A common strategy is upzoning—relaxing land use regulations to allow denser development. Using property characteristics and consumer trace data, I show that easing zoning requirements increases the number of housing units without changing average square footage or house prices. The zoning change also coincides with demographic shifts: treated areas see an increase in the number of households and in-migrants, particularly non-Hispanic White households. I find no evidence of racial or ethnic sorting among out-migrants, but those who leave tend to relocate to slightly higher-income neighborhoods. My analysis also identifies delayed spillover effects in nearby areas, suggesting broader, unintended consequences of zoning policy. By documenting the nuanced demographic impacts of upzoning, this work contributes to understanding how housing policy interacts with racial and socioeconomic equity. These findings speak to ongoing debates about how best to expand housing supply while ensuring that development does not exacerbate existing inequalities. 

Author

• Idil Tanrisever, University of California, Irvine
  Presenting Author