Upzoning and residential transaction price in Nashville

Empirical research on the impact of upzoning policies on housing affordability has produced mixed results. This paper uses difference-in-differences and matching methods to analyze the effects of the 2010 upzoning of downtown Nashville over the period 2000–2023. We find a significant increase in the average price of the treated parcels relative to similar untreated parcels. Estimated quantile treatment effects reveal that price decreases are concentrated at the upper end of the house price distribution, while upzoned parcels at the lower end experience price increases due to positive amenities and retained investment. Our findings underscore the importance of considering heterogeneity when designing and evaluating upzoning policies.