Economic Analysis of Residential Land-Use Alternatives

To establish optimum land-use policies, it is important that local planners understand the economic implications of various land-use alternatives. Data were collected for two alternative forms of residential housing, single-family detached homes and apartment complexes in Frederick County, Maryland. A benefit-cost analysis was performed to determine the relative profitability of these housing forms in Frederick County. The results compared favorably to a similar study conducted in Anne Arundel County, Maryland. Additionally, sensitivity analyses were performed to determine the relative importance of factors affecting the benefit-cost ratio. These factors included (1) The property tax assessment rate; (2) the average household income; (3) the average number of school children per dwelling; and (4) the average number of inhabitants per dwelling.