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Land Use Regulations, Compliance and Land Markets in Argentina


Empirical evidence on the impact of stringent land use regulations on the price of land and housing in urban areas is growing, yet most research has been carried out in countries where ordinances are enforced. If enforcement is lax, the ultimate impact of strict rules on land and housing prices is unclear. Lower levels of compliance with rules can result in negative externalities and thereby exert downward pressure on the price of formal land. This paper presents an empirical analysis of the relationship between land use regulations, compliance and land prices in the three major metropolitan areas of Argentina, the country with the most stringent land use and urban development regulations in Latin America, using an original dataset gathered from parcel- and municipal-level surveys. Results show that municipalities with higher levels of regulation have lower rates of compliance with property laws, and lots selling legally in these municipalities have lower land prices. © 2013 Urban Studies Journal Limited.

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