|
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
<br />Final 18.7.20091
<br />Value. The median land value per acre of recently developed parcels near -urban
<br />areas is double that of recently developed rural parcels, $32,000 per acre compared to
<br />$14,000 per acre (Table 2 -1). This finding confirms that there are different housing
<br />markets in the two areas, and that the SGRC Program will need to take into account
<br />the inherent differences in land value when 'setting formulas to convert developable
<br />acres from the rural areas to the near -urban areas.
<br />Table 2 -1. Land Value Statistics for Near -Urban vs. Rural Areas
<br />Area Type
<br />Near -Urban
<br />MIN
<br />0
<br />Land
<br />MAX
<br />556,368
<br />Value ._
<br />Average
<br />38,063
<br />Median
<br />24,576
<br />Std dev
<br />47,943
<br />Size
<br />1.6
<br />Developed
<br />0
<br />556,368
<br />43,081
<br />28,305
<br />50,785
<br />1.5
<br />Recent development
<br />0
<br />556,368
<br />90,141
<br />32,298
<br />130,425
<br />1.5
<br />Undeveloped
<br />0
<br />446,359
<br />22,067
<br />13,241
<br />32,688
<br />2.4
<br />Rural
<br />0
<br />175,267
<br />16,658
<br />11,958
<br />16,127
<br />3.4
<br />Developed
<br />0
<br />175,267
<br />18,567
<br />14,426
<br />16,130
<br />2.8
<br />Recent development
<br />0
<br />127,313
<br />24,743
<br />14,257
<br />27,577
<br />4.1
<br />Undeveloped
<br />0
<br />155,945
<br />12,024
<br />7,517
<br />15,154
<br />6.1
<br />The reason for using land value per acre, rather than simple land value or total value
<br />per acre, is to assess the parcels on a level playing field, without taking into account the
<br />size of the parcel, or the size or value of the house itself.
<br />Moreover, data in Table 2 -2 show that the range and standard deviation of land values
<br />in the near -urban areas is nearly four times that of the rural areas, indicating strong
<br />fluctuations in value in the near -urban areas. Large differences in value are significant
<br />when considering that the SGRC Program must take into account differences in land
<br />value to correctly set formulas that will result in appropriate economic incentives.
<br />To further investigate how much distance from a municipality influences land value, we
<br />ran a cross - correlation between distance, parcel size, land value and total (land +
<br />building) value per acre (Table 2 -2). A value close to one in the table indicates that the
<br />two variables are strongly influence each other, while a value of less than 0.5 indicates
<br />that the two variables are largely independent. A negative value indicates that when
<br />one variable increases, the other decreases. For example, land value per acre is
<br />correlated with total value per acre very strongly, with a value of 0.95, indicating that
<br />when land value is high, total value is very likely to be high. The correlation values
<br />between distance from municipal boundary and land value per acre and parcel size
<br />do not show a strong correlation. This indicates that the variables are largely
<br />independent, and land value is based on additional factors.
<br />Table 2 -2. Cross - Correlation of
<br />Distance from
<br />municipal boundary
<br />1.0
<br />Parcel Size
<br />0.26
<br />1.0
<br />Land Value per acre
<br />-0.38
<br />-0.21
<br />1.0
<br />Total Value per acre
<br />-0.32
<br />-0.17
<br />0.95
<br />1.0
<br />ORANGE COUNTY, NORTH CAROLINA
<br />
|