What is the effect of green belts on housing prices and inner-city density?

• A. Green belts can constrain outward growth and lead to higher density inside the belt.
• B. Green belts always lower housing prices city-wide.
• C. Green belts eliminate the need for public transit.
• D. Green belts can encourage development just outside the belt.

Answer: (A)

Green belts restrict outward urban growth, so land on the fringe isn’t released for new housing. That keeps overall supply tight, which makes inward development more dense as builders and residents compete for the same limited land. The result is higher housing prices inside the belt and more intensive (higher-density) land use in the inner city. While some development may creep just outside the belt, the main effect in terms of pricing and inner-city density comes from concentrating growth inside the boundary.