False Promises: High Density will reduce Housing Cost |
||||||||||||||||||||||||||||||||||||||||
This page contains something very unusual in the planning field: |
||||||||||||||||||||||||||||||||||||||||
| Over the last year and a half, the authors have gathered and analyzed housing cost information on nearly 70 housing projects built in the last four years. The projects range in size from single-family homes to multi-family projects of some 200 units. Staff interviewed developers and public officials, and conducted site visits to recently completed projects. The understanding we have gained and the results of our analysis are presented in this paper, and some of the principal findings are summarized below. The following figures represent total development costs, not just construction costs. | ||||||||||||||||||||||||||||||||||||||||
• The cost of developing housing, when measured per person housed or per square foot built, is lowest for single family residences. The cost is slightly higher for townhouses or small plexes, and increases significantly for multi-family and mixed-use developments. |
||||||||||||||||||||||||||||||||||||||||
• If housing development costs are calculated on a per-unit basis, on the other hand, multi-family projects are the most cost effective. Unit costs are lower because the majority of multi-family units are small studio or one-bedroom units.
|
||||||||||||||||||||||||||||||||||||||||
• Housing development costs rise dramatically as building height and housing density increase.
|
||||||||||||||||||||||||||||||||||||||||
Study Commissioned by Portland's Metro: We need higher land prices |
||||||
| If the public sector wants the private sector to build more densely
it must do something to affect demand and supply conditions so that land
prices increase... from (page 8) of metrourbancentersreport.pdf 1.3meg PDF |
||||||
Cost Premiums of High Density - Data from portland's Metro |
||||||
Here is actual data from Portland's Metro, the regional planning agency |
||||||
|
||||||
|
||||||
|
