Impact of Florida's Growth Management Act on Housing Prices and Affordability in Florida
Several states have growth management laws, and many more are considering them. Multiple studies have confirmed that such laws may increase housing prices. However, higher housing prices do not automatically lower housing affordability. The research presented in this article examines the effect of Florida's Growth Management Act on housing affordability. Using two indices of housing affordability, with data from all 67 counties over a 16-year period, and after controlling for alternate hypotheses, this study finds that the Act had a statistically significant effect in decreasing the afford-ability of single-family homes. To help mitigate this negative effect, some policy interventions are suggested.