Are you considering purchasing a home or land in Oregon but are concerned about how future zoning changes affect property values? Your home and land are often your largest investments, and feeling secure in your decision-making is paramount. Richard Stevens & Associates is here to help you navigate land use regulation issues, including how future changes could impact your property’s value.
Land use regulations and zoning changes can have a significant impact on property values in Southern Oregon. Two studies, “How Have Land-use Regulations Affected Property Values” (2007) and “Land-use Regulations and Property Values in Portland” (2023), provide insights into the effects of land-use regulations on property values.
“How Have Land-use Regulations Affected Property Values”
“How Have Land-use Regulations Affected Property Values”The first study, conducted by Oregon State University, examines the ways in which land-use regulations, in general, and Oregon’s land-use planning system, in particular, may affect property values. The study analyzes land value patterns for lands with and without development restrictions in parts of Oregon over the past 40 years. The study finds that land-use regulations have not systematically reduced the value of restricted properties in Oregon and that the negative restriction effects are not as severe as some have claimed. The study also identifies three potential effects of land-use regulations on land values: the direct effect of the regulation on land use, the indirect effect of the regulation on land use through changes in the price of inputs, and the effect of the regulation on the amenity value of the land.
The results of this analysis indicate that since Oregon’s land-use planning system was introduced in 1973, land values have generally risen, even as adjusted for inflation. This includes rural lands zoned for farm and forest use as well as land suitable for development both inside and outside of urban growth boundaries. In fact, the change in land values in Oregon has been comparable to those in Washington.
“Land-use Regulations and Property Values in Portland”
The second study, conducted by researchers at Portland State University, examines the effects of land-use regulations on property values in Portland. While this part of the state is very different than Southern Oregon, the study is valuable to consider because there are many more examples of possible property value impacts in its region. The study uses a regression discontinuity design approach to estimate the causal effect of zoning changes on property values. The study finds that zoning changes have a significant positive effect on property values in Portland. The study also finds that the effect of zoning changes on property values varies depending on the type of zoning change and the location of the property.
What should you do if you have questions about how zoning changes affect property values in Southern Oregon?
Given the complexity of land-use regulations and zoning changes, it can be challenging for property owners to navigate the regulations and understand their impact on property values. This is where Richard Stevens & Associates can help. We provide guidance and consulting services to help property owners navigate regulations and zoning changes in Southern Oregon. We offer a range of services, including land use planning, zoning analysis, and permit assistance. Our team of experts has extensive experience working with local governments and can provide valuable insights into the regulations and zoning changes that affect property values.
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