A Case Study about Market Acceptance of Smart Growth
Executive Summary: Smart growth master-planned developments are growing in popularity, with tens of thousands of new housing units built in the 20-plus years since the creation of the earliest examples.1 This extensive body of evidence presents an opportunity to evaluate the financial performance of smart growth housing compared to its conventional counterpart. Home buyers, developers, builders, and municipal leaders probably understand the environmental benefits, but they may still need information about the investment potential of smart growth projects. This report contributes to a better understanding of the impact of and potential for smart growth development approaches by considering long-term trends in price appreciation. It compares resale prices for single-family houses and townhouses in these developments with units in conventional developments that are equivalent in terms of size, age, amenities, and location.
This report uses resale data from 18 smart growth developments and 18 conventional suburban developments across the United States to contrast their appreciation between 1998 and 2004. Local real estate professionals were engaged to help ensure that contrasting developments were comparable in terms of local buyer preferences and market conditions. Twenty-one comparisons were completed in 17 case studies (in some cases, there were multiple developments within a single community). In 10 of those comparisons, the smart growth communities showed higher resale appreciation. In six of the comparisons, the conventional suburban communities showed higher resale appreciation. In two cases, the compared communities showed equivalent performance, and in three cases, inadequate data meant that no conclusion could be reached. Keep reading…








