Does the Rural Urban Boundary impose a price premium on land inside it?


Author:  
Shane L Martin, David S Norman
Source:  
Auckland Council Chief Economist Unit
Publication date:  
2020
Topics:  
Economy

We calculate the price premium on developed residential land inside the Rural Urban Boundary relative to farm and lifestyle land outside the boundary.

We find the boundary is likely to add a price premium of at most 5.2% to developed residential land inside the boundary compared to farmland outside, and at most 4.2% compared to lifestyle land outside. These premiums are substantially lower than estimates in previous studies, and are before accounting for any social costs of more expansive development not included in market prices, such as increased congestion or emissions.

February 2020