Dynamics of the urban zoning structure: An empirical investigation of zoning change

This study empirically examines the role of land prices in the decision to rezone vacant land from one land use to another. Although the study of zoning and related issues is well documented, this is one of only a handful of studies that directly examines zoning changes. Unlike previous studies that treat zoning as static, acknowledging only that the current allocation of land differs from the market allocation, this study examines if the allocation of land will be reallocated (rezoned) toward a market allocation. The study is unique in that it analyzes zoning changes on an individual property basis and is based on transactions of vacant parcels. The data are drawn from a single municipality, Chicago-Illinois, allowing a uniform definition of zoning classification rather than trying to combine data under multiple zoning authorities.