IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v36y2005i1p100-112.html
   My bibliography  Save this article

The Effect of Development Impact Fees on Land Values

Author

Listed:
  • JENNIFER S. EVANS‐COWLEY
  • FRED A. FORGEY
  • RONALD C. RUTHERFORD

Abstract

ABSTRACT This paper presents an empirical analysis of the effect of impact fees on the value of land used in residential development. A random effects model is estimated to examine the relationship between impact fees and land values using forty‐three Texas cities that impose impact fees. Prior research suggests that higher impact fees result in higher lot values, and the results of this research support this suggestion. Results indicate that for each $1,000 increase in impact fees, lot values increase by 1.3 percent. Additionally, these results suggest that developers are able to pass a small amount of the impact fee to the owners of developable land. However, for undeveloped land the results are mixed. For each $1,000 in assessed impact fees, undeveloped land values decrease by 0.042 percent. These results support prior evidence that suggests home buyers may ultimately bear the majority of the cost of impact fees.

Suggested Citation

  • Jennifer S. Evans‐Cowley & Fred A. Forgey & Ronald C. Rutherford, 2005. "The Effect of Development Impact Fees on Land Values," Growth and Change, Wiley Blackwell, vol. 36(1), pages 100-112, February.
    • Handle: RePEc:bla:growch:v:36:y:2005:i:1:p:100-112
    DOI: 10.1111/j.1468-2257.2005.00268.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-2257.2005.00268.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-2257.2005.00268.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaofang Dong & Shihe Fu & Yufei Yuan, 2013. "Impact Fees and Real Estate Prices: Evidence from 35 Chinese Cities," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 8(2), pages 207-219, June.
    2. McAllister, Pat & Shepherd, Edward & Wyatt, Peter, 2018. "Policy shifts, developer contributions and land value capture in London 2005–2017," Land Use Policy, Elsevier, vol. 78(C), pages 316-326.
    3. repec:wyi:journl:002181 is not listed on IDEAS
    4. Adam T. Jones, 2015. "Impact Fees and Employment Growth," Economic Development Quarterly, , vol. 29(4), pages 341-346, November.
    5. Elizabeth Jean Taylor, 2016. "Urban Growth Boundaries and Betterment: Rent-Seeking by Landowners on Melbourne's Expanding Urban Fringe," Growth and Change, Wiley Blackwell, vol. 47(2), pages 259-275, June.
    6. Burge, Gregory, 2014. "The capitalization effects of school, residential, and commercial impact fees on undeveloped land values," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 1-13.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:36:y:2005:i:1:p:100-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.