Notes

Outline

Patterns of Development in the U.S.: Are We Consuming Too Much Land? Elena Irwin Assistant Professor AED Economics Department

Outline of Talk How can we characterize current patterns of urbanization? What are the factors that influence the location and pattern of development? Ultimate Question: What is the right amount and pattern of development and are we achieving it?

Overconsumption of Land? Major land uses in U.S. in 1992: Cropland….459.7 million acres Pasture……589.0 Forest…….558.7 Urban…….152.4 Even if 50% of the currently undeveloped land is reserved, we still have enough land for a population five times as large.

Economic Effects As land becomes more scare, per acre price of land will increase à higher density development. Conclude: No problem

Why is this Argument too Simple? It only considers the supply of land Must also consider: Opportunity cost of development Impacts of development (i.e. the costs and benefits of development)

Potential Costs of Development Public finance = costs of providing public services Increased congestion Loss of traditional character Loss of aesthetics (ex: scenic views) Loss of environmental quality (ex: wildlife habitat)

Potential Benefits of Development Increased economic activity Job growth Increased per capita incomes Increased housing values More diversity

Are We Consuming Too Much Land? The answer depends not only on the supply of available land for development, but also on the costs and benefits of development The pattern of development influences many of the costs.

Recent Development Patterns “Edge City” development transformation from residential suburbs to cities “Exurban” development Exurban = areas outside the metropolitan region, but that lie within the commutershed Fastest growing areas in the U.S. in the last several decades.

BW sim Source: USGS National Mapping Division: http://edcwww2.cr.usgs.gov/umap/umap.html

What Influences the Amount of Exurban Development? Rising housing prices and tax rates in urban/suburban areas Increased accessibility (due to road building) Relocation of employment Better quality of life Changes in population (ex: more retirees) Changes in technology (ex: telecommunications)

What Influences the Pattern of Development? Location of development is influenced by: Zoning/land use controls Public services (schools, police protection, sewer/water) Proximity to employment Proximity to other activities (shopping, recreation, entertainment) Surrounding land uses

Are We Consuming Too Much Land? Private benefits of scattered pattern less congestion, more open space for each household. Community costs of scattered pattern public service costs loss of rural character, farmland degradation of environmental resources