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12 <br /> 1 Slide #18 <br /> 111-1, IV 2�41 C_=:Ci LJ V-Y <br /> • Over the short-term, upzonings may <br /> or may not increase construction. <br /> What do we know • Over the long term, upzoning likely <br /> expands construction, but the scale <br /> about zoning of upzoning matters: The bigger the <br /> reform's impact on upzoning, the more likely it will have <br /> housing an impact. <br /> construction? • Downzoning reduces construction. <br /> N••A N - I N 5 T I T N T [ <br /> 2 <br /> 3 Chair Hamilton said there is a concept called "amenity effects," where upzoning and <br /> 4 providing more amenities increases demand and reduces affordability. <br /> 5 <br /> 6 Slide#19 <br /> 111-IC IV CIJLJV-Y <br /> How Might Zoning Reform Affect... <br /> Neighborhoods Versus a Region Overall? <br /> • Zoning reform's impacts are localized: They impact the neighborhoods <br /> where they are implemented. <br /> • But construction doesn't automatically follow! Construction is only <br /> feasible under the following circumstances: <br /> 1. Zoning change produces a large difference between a parcel's current built <br /> ("improvement") value and its potential built value. <br /> 2. A neighborhood has high enough rents or home values to cover the costs <br /> associated with new construction. <br /> 3. The real-estate market overall is profitable to investors at a return equivalent to, <br /> or higher,than other types of investment. <br /> • U R•A N - I N{T I T•T[ 19 <br /> 7 <br /> 8 <br /> 9 <br />