A university study finds that adoption of masonry ordinances, which are local
zoning requirements that specify a certain percentage of clay brick and masonry
as the primary exterior building material, increases the value of property in
a community and contributes to continued growth, without any significant increase
in ownership or rental costs.
The study was commissioned by the Brick
Industry Association (BIA) and conducted by University
of Michigan's Taubman College of Architecture and Urban Planning. This research,
the first of its kind, examined four suburban communities near Chicago to assess
the impact that the adoption of a masonry ordinance has on housing prices and
the fiscal health of a community. The study's methodology ensured that the research
findings are relevant throughout the nation because the development trends in
Chicago are closest to the national average, according to the study's "dissimilarity
index" based on 1990 and 2000 census data.
"The research shows that masonry ordinances can ensure that development supports
the long-term interests of the community while addressing the interests of both
its citizens and the business community," said Dick Jennison, President & CEO
of BIA.
"This study and its conclusions are significant in the context of the continuing
discussion of masonry ordinances and growth in American communities nationwide,"
Jennison continued. Researchers examined two communities -- Orland Park and
Tinley Park -- that had a masonry ordinance in effect for more than 10 years,
and examined two comparable communities -- Hoffman Estates and Streamwood --
without a masonry ordinance, but with similar demographic, economic and housing
profiles.
The study looked at four issues of importance to communities considering masonry
ordinances -- affordability, property values, growth and taxes.
Findings include:
- Masonry ordinances do not drive up home or rental costs: Based on 2000
Census data, the research found that the median owner cost for households
with a home mortgage in Cook County's suburbs is approximately 22.8 percent
of household income. The costs in Orland Park and Tinley Park actually run
slightly below the average at 22.2 percent. Homeowners without a mortgage
in Orland Park and Tinley Park also have lower cost burden than many of their
neighboring communities. When the average rental burden was examined, researchers
found the median rental burden in Cook County's suburbs is 24.4 percent of
household income, with Orland Park and Tinley Park running slightly lower
at 23.4 percent and 24.1 percent respectively.
- Masonry ordinances create lasting value for homeowners and communities:
The adoption of masonry ordinances improves long-term property values for
homes in a community. When compared to the town of Streamwood, the research
found that a constant-quality residential property in Orland Park could sell
for 95 percent higher and 128 percent higher than in Tinley Park. When compared
to the town of Hoffman Estates, properties located in Orland Park would sell
at a price 79 percent higher than Hoffman Estates, with properties located
in Tinley Park selling at an average price that was 112 percent higher.
- Masonry ordinances ensure quality and lasting growth: Researchers found
that Orland Park and Tinley Park continue to grow at a faster rate than the
comparable communities studied that do not have masonry ordinances in effect.
Orland Park and Tinley Park had a population growth rate of 43 percent and
34 percent respectively from 1990 to 2000, while the median growth rate among
Cook County's suburbs was just 5 percent. The two comparable communities identified
for the study, Hoffman Estates and Streamwood, had growth rates of 6 percent
and 17 percent respectively in the same time period.
- Communities realize long-term value and reduce the overall tax burden for
citizens: The research found that Orland Park consistently outperforms other
communities in Cook County in terms of total sales receipts, while Tinley
Park continues to experience a rapid increase in the amount of sales receipts.
The result is a reduced property tax burden for residents.
The study looked at more than 25 years of data from the case study communities,
examining real estate transactions, tax records, census data, and sales receipts,
with a primary focus on analyzing the community changes between 1990 and the
present.
"A masonry ordinance helps communities avoid that 'urban sprawl' look by diversifying
housing design, but also encourages long-lasting positive externalities that
lead to strong growth," said Kathleen Fenton, Trustee of the Village of Orland
Park.
"Tinley Park and Orland Park are perfect examples of what a masonry ordinance
can do to the long-term value of a community."
Complete findings of the University of Michigan study will be available early
next year.
To learn more about the study or obtain an Executive Summary, please visit
http://www.gobrick.com/planning
Posted 6 December 2005
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