EFFECTS OF LAND USE REGULATIONS ON HOUSING PRICES IN LAGOS STATE

Abstract

The living standard of the residents in an urban area could be influenced either positively or negatively by land use regulations through its impact on property value. This paper examined the effects of land use regulations on residential property prices in Lagos State. The town planners in Lagos State planning office indicated the land use regulations adopted in the State and these were incorporated into the housing price determinants questionnaire administered to the real estate developers in the State. The methods of analysis adopted wer e correlation and multiple regressions. The result s revealed that there is increasing difficulty of obtaining regulatory approval for building or redeveloping old h omes. These have significant effect on housing prices. Given the acute shortage of housing in Lagos State, the policy makers should factor the adverse effect of the identified land use regulations so that it would not be counterproductive on shelter provision. By implication, the effects of land use regulation on the rental market might have repercussion on housing. In view of the above findings, there is need for innovative planning regulations.