Residential Land Values in Urbanizing Areas

Zoning decisions related to residential lot size and density affect residential land value.Effects of size on residential parcel value in Roanoke County, VA, are estimated with fixedeffects hedonic models. Parcel size; elevation; soil permeability; proximity to urban areas,malls, and roads; and location influence parcel value, but the effects vary by value ofconstruction and development status. Parcel value per square meter declines with increasingparcel size. The estimated relationships could be used to evaluate zoning decisions in termsof land values and tax revenues if model estimation uncertainties and responses bydevelopers to zoning strategies are considered.