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Full-Text Articles in Urban Studies and Planning
Are Profits From Subdivision Development Higher In Areas With More Regulations? A Case Study Of South Kingstown, Rhode Island And Some Implications For Land Use Planning, Rayman Mohamed
Rayman Mohamed
Little is known about the relationship between regulations and profits from residential subdivision development. This article presents data that for the first time determines profits from subdivision development in a heavily-regulated market. This study found an average profit, measured by internal rates of return, of 29 percent, comfortably above what scholars consider normal. Profits decreased as time increased to complete the subdivision. Profits also decreased because of delays due to regulations and voluntary delays by developers. These results suggest that implementing smart growth policies may be challenging in more-regulated areas and easier in less-regulated areas. The findings suggest that higher …