Bachelor of Science, Business Economics

Advisor: Todd Yarbrough

Document Type



This paper is primarily concerned with measuring the impact of zoning for single family residential on city tax revenues within the San Francisco Bay Area. Single family residential zoning acts as a form of Euclidean zoning by restricting zoned land to one type or use. In the wake of decisions of cities such as Minneapolis to end zoning for single family housing, there has been a push for more research into the possible impacts going forward. This paper takes cross-sectional data from 2020 for 101 cities within the Bay Area. To estimate the impact of zoning on city tax revenues, this paper utilizes OLS regression models with robust standard error to help account for heteroskedasticity. The final model used found a negative causal impact of single family residential zoning on tax revenues. It was estimated that if a city had more than 80% zoned for single family residential that they would face a decrease of $82,783,312.90 in tax revenue. These findings were shown to be significant at the 10% level. In addition, multiple control variables were found to have statistically significant impacts on city tax revenues.

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Economics Commons