Value of Land Use Efficiency

Local governments across the country are facing growing fiscal pressures as infrastructure costs rise and housing affordability continues to worsen. While housing policy discussions often focus on social and economic outcomes for residents, the fiscal impacts of land use decisions on cities and towns receive far less attention. Zoning and development rules shape how much value communities generate per acre and how efficiently public services can be delivered. When those rules limit housing options, they can unintentionally contribute to long-term budget challenges for local governments.

This report and accompanying video, developed in partnership with Urban3, examine how different residential development patterns affect municipal fiscal health. Using data-driven analysis and real-world examples, the research illustrates how housing type and density influence tax revenue, infrastructure costs, and overall economic productivity. The findings highlight the importance of allowing a broader range of housing choices, including townhomes, missing middle housing and mixed-use development, so communities can support housing affordability while strengthening their long-term fiscal sustainability.