pf_00145 - Laserfiche WebLink

Home

Coon Rapids and Cottage Grove townships ari slx mi esr from the dge of d by tract builders; both are located more tha continuous development. The appraised land values for residential developmenx in those two townships were the lowest in the Metropolitan Area with about half of the parcels appraised at less than $1, 000 per acre. (The actual cost of the land was les�ructed the PPeatest hare•of The largest home builder in the Area cons g hous e s in both of the s e c ommunitie s. La a� ate that low lanc� p bic e sand le f t by p a s s e d a t t h e t i m e o f d e v e l o p m e n t were a s�trong attractive force. Once a buildex starts a development in a new area, prices o£ adjoining land rises rapidly. Part of this increase is due to actual increase in value because of the adjoining d the �efore t�whsebt 1 acqu � etor pt on all is speculative. The builder is, the land he has further need for at the outset if he can affo�d to tie up the capital. The builder of more expensive homes has a different type of locational freedom than the tract builder. As inve t d nrthe lottcan � se propor- c re a s e s , t h e a m o u n t o f m o n e y t o b e tionatel y. Conse quently, the custom builder can afford land which the tract developer cannot. Two cor� V luenof C 42 was obtained for the support this cost structure. An relationship between land value per ac�ov d subdivgsionsCe With 1 buse and lot for 99 cases based on FHA app cases of VA approved eubdivisions, an r value of . 66 was obtained for this relationship between appraised value per lot and total value of house and lot. The small builder (one to ten homes per year), of which there are many, have still another range of choice. Their small land requirements at any given time permit them to searchdersby 4the rsmall bu lderslcon- area or to purchase lots from subdiv centrate their building in rural locations. These various locational requirements of the different types of home , builders, in conjunction with their freedom of choice within b�ine the sectors of the Metropolitan on ext akHoweve os g v entthe characteristics . s p e c i£ i c; s i t e t h e y w i l l b u i l d and value of a piece of residential land the type of builder an d va lue o f the home could be predicted with gr e�tforcd ffe etnt• pr ce homes 1 ec o n o m i c c o n d i t i o n a f f e c t s t h e m a r k �uilding in the frontier zon�e has oth arcels n foreall s ze builders l�Wer costs and ease of assembl�ng large p Although it woul.d be hard to substantiate � that the ackf of gove� nmental g in new areas, there is emplrical evidenc con�rols do��s prompt builders to seek un bdiv sion o� d nances or bul ld- lages and townships without zoning and s ing codes offer opportunities to shave building and development costs 26