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Do Impact Fees Raise the Price of Existing Housing?
Comment: Chapin
Comment: Crowe
Effects of Proportionate-Share Impact Fees
Do We Know Regulatory Barriers When We See Them?
Reassessing the Role of Housing in Community-Based Urban Development
The Impact of Parental Homeownership on Children's Outcomes during Early Adulthood
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Do Impact Fees Raise the Price of Existing Housing?
Volume 18, Issue 4
2007

Shishur Mathur
 
This article uses 1991–2000 data on single-family housing sales from King County, WA, to provide new evidence relating to the effects of impact fees on housing prices. The hedonic regression method is used to examine the effects of these fees on existing housing as well as their differential effects on price as determined by housing quality.

Impact fees raise existing home prices by about 83 percent of the amount of the fee. The increase is 103 percent for high-quality homes and is not statistically significant for low-quality homes. The owners of high-quality homes realize capital gains from impact fees. However, such fees do not raise the price of low-quality homes. To the extent that low-quality housing is more likely to be owned by low- and moderate-income households, which are often composed of racial and ethnic minorities, this finding has significant
policy implications for the supporters of impact fees.

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