Notes
Outline
Patterns of Development in the U.S.: Are We Consuming Too Much Land?
Dr. Elena Irwin
Assistant Professor
AED Economics Department
January 3, 2000
Seneca County Regional Planning Commission
Annual Meeting
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
pax94
Calvert County, Maryland
Between 1981-1997:
94% increase in population
191% increase in residential land area
145% increase in the degree of fragmentation of the landscape
ca819097
Developable Parcels in NE Charles County, 1991
1990-91
1990-92
1990-93
1990-94
1990-95
1990-96
1990-97
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
Research Question
What are the relative effects of these factors on the conversion of land to residential use?
For example, if a road is widened or a new sewer line built, what sort of an effect will this have on new development patterns?
Research Method: A Model of Land Use Conversion
Goal of land developer: to maximize expected profits from developing land.
What are the most important characteristics of a parcel that influence expected profits?
Data: Exurban region of Maryland
GIS Data:
Six year history of “developable” parcels (1991-1997)
Location of roads, cities, sewer and water service areas, soil quality
Land use pattern
Research Findings
Most significant factors:
Distance to urban area (Washington DC)
Minimum lot size
Other factors that were also significant:
Public sewer/water
Soil quality
Surrounding land use
Research Findings: The Importance of Open Space
Research finding:If a parcel is surrounded by development, the probability of its conversion is lower.
This implies: Surrounding open space has a positive effect on the probability of a parcel’s conversion.
This helps to explain the fragmented development pattern.
Developable Parcels in NE Charles County, 1991
1990-91
1990-92
1990-93
1990-94
1990-95
1990-96
1990-97
Developable Parcels in NE Charles County, 1991
Restrict II 10
Restrict II 20
Restrict II 30
Restrict II 40
Restrict II 50
Restrict II 60
Restrict II 70
Restrict II 80
Restrict II 90
Restrict II 100
Restrict II 110
Restrict II 120
Developable Parcels in NE Charles County, 1991
Full 10
Full 20
Full 30
Full 40
Full 50
Full 60
Full 70
Full 80
Full 90
Full 100
Full 110
Full 120
Actual vs Predicted
Policy Implications
Policies that encourage more clustered development are needed to offset the positive effect of open space.
Policies that focus only on preserving open space could have unintended effects.
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
Are We Consuming Too Much Land?
Community Economics Briefings Page
“Explaining Sprawl in Exurban Areas: The Role of Open Space,” December 1999
http://www-agecon.ag.ohio-state.edu/comregecon/briefings.htm