Deregulation of accessory dwelling units: a policy analysis of Austin's ADU ordinance
Date
2021
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Publisher
University of Delaware
Abstract
The problem of dramatically rising housing costs in many fast-growing cities around American has become a pressing issue for local policymakers as their cities become increasingly unaffordable and residents are displaced from their neighborhoods by the rising cost of housing. Constraints on the supply of new housing in such cities, most notably through an overapplication of single-family zoning, are blamed for distorting housing markets and inflating the cost of homes in desirable neighborhoods. Zoning changes can prove to be a treacherous topic for local policymakers, and one incremental alternative to wholesale rezoning of single-family properties is to permit the construction of Accessory Dwelling Units on such properties. In 2015, the City of Austin, TX passed an ordinance doing just that. This thesis evaluates the effect of that ordinance on the construction of ADUs within the City and whether the development pattern of single-homes with an ADU results in lower per-unit prices for homes and higher overall property values. While it is difficult to conclude definitively that the ADU Ordinance itself was the cause of increased ADU construction because rates of ADU construction had begun to rise prior to Austin City Council’s passing of the ordinance; this thesis finds clear evidence that permitting ADUs results in the development of units with lower per-unit home prices and significantly higher overall property values.
Description
Keywords
Accessory Dwelling Units, Housing, Land use, Zoning