Agenda - 08-24-2009-C2 - Laserfiche WebLink

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STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM Final (8.7.2009) Density. Land value per acre is higher for housing developed at higher density, for both near -urban and rural areas (Figure 2 -2). This finding is an indication that developing at higher densities may yield a higher return to developers, which is crucial to the success of a SGRC Program that proposes to increase the density of development in near -urban areas. If the returns to developing at lower densities were greater than developing at higher densities, using SGRC as a method to develop at higher densities would not make sense. Likewise, if housing is currently being built at relatively low densities, regardless of higher density allowed by zoning, that would indicate that the market for higher density housing in Orange County is not strong, and a SGRC Program may need additional incentives to be successful. Figure 2 -2. Average Land Value per Acre for Recent Development, by Density 500,000 450,000 400,000 350,000 w a 300,000 m CL 250,000 A v 200,000 J 150,000 100,000 50,000 Near Urban Rural 20 10 8 6 4 3 2 1 1.5 ac 2 ac 3 ac 4 ac 5 ac 6 ac 7 ac 8 ac 9 ac 10 ac > 10 ac units /ac units /ac units/ac units/ac units/ac units /ac units /ac unit/ac Recently developed parcels in the near -urban geographies were developed at an average of 1.5 acres per unit, while those in rural areas were developed at an average of 4.1 acres per unit. The histogram in Figure 2 -3 illustrates the distribution of both near - urban and rural development density. Most parcels in the near -urban areas were developed between one and three acres per unit, likely because current zoning does not permit development at greater than one unit per acre in most cases. Both near - urban and rural development experience another peak at one unit per 10 acres or more, likely because current zoning regulations are less stringent for such large parcels. ORANGE COUNTY, NORTH CAROLINA