The Economics of Conservation Subdivisions

Abstract

The environmental benefits of less land consumption and a growing interest in addressing the negative economic and social impacts of sprawl have resulted in calls for more sensitive subdivision designs. One such design is conservation subdivisions. However, not much is known about these subdivisions, in particular about their economics. This article addresses the issue by examining price premiums, investment costs, and absorption rates for lots in conservation versus those in conventional subdivisions. The results show that lots in conservation subdivisions carry a premium, are less expensive to build, and sell more quickly than lots in conventional subdivisions. The results suggest that designs that take a holistic view of ecology, aesthetics, and sense of community can assuage concerns about higher density. However, the potential negative consequences of conservation subdivisions require further study.