Zoning, TDRs and the density of development

This paper explores the effect of low density zoning regulations and other factors on subdivision density. Using a unique dataset of new subdivisions built over a 34-year period in Calvert County, Maryland, we econometrically estimate a density function using both OLS and censored regression. The variability in density permitted by the county's zoning and TDR rules over the sample period allows us to assess the relative importance of market factors and regulatory constraints on density. We use the censored model to predict what density patterns would have been without zoning.