It has largely been accepted that so-called “smart growth” development policies raise the cost of land. But do they also increase the price of home construction? Apparently so, according to Wendell Cox and Ronald Utt of the Heritage Foundation, who cite a new report showing construction costs to be nearly $85,000 higher per resident in smart growth areas, than in those with less restrictive policies. Some of the increase is due to “infilling” that seeks to redevelop vacant lots in cities and suburbs, but a large part is also due to development impact fees that can range from $20,000 to $50,000. Another reason why “smart growth” may not be so smart for our pocket books.
March 26, 2004 by CFACT,
CFACT defends the environment and human welfare through facts, news, and analysis.