When zoning is not a constraint, development charges are paid by homebuyers in the form of higher housing prices. The tax reduces developer demand for land, which reduces the supply of housing, resulting in higher prices.
Michael Wiebe
Misconception: development charges are paid by developers.
Fact: development charges are paid by landowners (and by renters and homebuyers, when they make projects infeasible and reduce housing supply).
Incredible stuff happening in New Zealand.
This report proposes a legal framework where going over an objective threshold of housing scarcity (a premium on higher-density land prices) would trigger *automatic* upzoning.
