Growth and Change · 1998 · 65 citations · 0 references
Social SciencesUrban PlanningUrban PolicyHousingUrban DevelopmentUrban EconomicsDevelopment FinanceDevelopment Impact FeesHousing DevelopmentReal Estate Development EconomicsResidential DevelopmentUrban Public FinanceHousing Development EconomicsImpact ChargesImpact Fee FinancingResidential Development EconomicsResidential Land PricesUrban Land Prices
ABSTRACT Over the last twenty‐five years local governments in the United States and Canada have increasingly used impact fees and other development exactions as methods of financing capital and infrastructure requirements mandated by residential growth. While several studies have examined the effects of impact fees on housing and land prices, rigorous empirical analysis of their effects on residential development is lacking. In this paper a sample of all municipalities in DuPage County, Illinois from 1977 through 1992 is used to examine the effects of impact fees on the rate of residential development. The empirical results show that impact fees reduce rates of residential development by more than 25 percent.