Median Sales Price of Homes in Maryland
Mark Goldstein, a demographer here at the Maryland Department of Planning, ran numbers the other day on the median sales price of homes in Maryland inside and outside the Priority Funding Areas, the places that counties (and Baltimore City) designate for growth — and the findings were surprising.
There’s been contention from some quarters across Maryland that the proposed septics bill, which would restrict major subdivisions from being built on septic systems, will lead to lower property values.
Yet it was interesting to find, from Mark’s analysis, that on average, the homes built inside the more densely developed growth areas held their value more consistently than homes built outside the growth areas, which by their nature are typically larger, more expensive and require more property.
Maybe most surprising was that the homes inside the PFAs rose in value more than homes outside the PFAs even during the large run-up in values during the housing bubble. Perhaps to be expected, the homes inside the PFA didn’t tumble in value quite so steeply as the (larger) homes outside the PFA during the 2007-2009 downturn. And from 2002-2009, which basically encompassed the great run-up and fall down of home values across Maryland — and just about everywhere else for that matter — the homes inside the PFA, located in more traditional communities and designated growth areas, fared better economically than the homes that were built in more sprawling fashion farther from infrastructure and services.
- Percentage Change in Median Sales Value of Homes in Maryland
Some have cast sustainable land planning as being at odds with prosperity or economic development, but to the contrary, at least by some recent measures, property values inside Maryland’s designated growth areas have held their value quite well when compared with the open land beyond.
Homes in more traditional communities tend to hold value better than those built as sprawl | Friends of Frederick County
Feb 24, 2011 @ 20:58:44
Feb 24, 2011 @ 20:58:56
Your conclusions seem to be at odds with the data in your table. The table shows that the value of homes outside priority funding rose in value faster…and while the homes outside did come down a slightly greater percentage than those inside PFA’s, the data clearly shows that homes outside the PFA’s are worth a greater percentage in 2010 than they were worth more than homes inside PFA’s back in 2002 – a trend that the data shows persisted and grew each year throughout your chart. You might want to re-look at the data, or re-consider your conclusion.
Mar 06, 2011 @ 14:02:28
Your statement is simply not true. Look again at the graphs. The net change in sales value is higher in the homes inside the PFA, and therefore, logically, you cannot be right. And simple division shows you are not correct.
>the data clearly shows that homes outside the PFA’s are worth a greater percentage in 2010 than they were worth more than homes inside PFA’s back in 2002
Feb 24, 2011 @ 21:13:28
I’d be interested to see this same analysis done for the Eastern Shore alone; and for PFAs “of record” which exist in rural areas but don’t have water and/or sewer service.
We have a lot of them in Kent County; PFAs are supposed to be economic development zones; I have been trying to find out how the cunty gov’t here has been taking advantage of the PFAs they have, aside from initiating water-sewer projects. I am coming up short.
Feb 25, 2011 @ 00:20:31
I’d be interested to see the percent change in home sales year over year inside/outside PFAs. I suspect that home sales didn’t fall as fast inside the PFAs as they did outside. With lower home prices and lower commute costs, you’d expect demand for housing inside PFAs to stay relatively strong compared to outside during a recession and time of generally high fuel prices. This relatively stronger demand would help explain Mark’s findings. Thanks for sharing these data!
Feb 25, 2011 @ 01:22:51
You lead with; “There’s been contention from some quarters across Maryland that the proposed septics bill, which would restrict major subdivisions from being built on septic systems, will lead to lower property values.” How do the data analyzed make more than an inference about septic systems?
You follow with; “homes built outside the growth areas, which by their nature are typically larger, more expensive and require more property”. Are any of these statements supported by data?
I’m all for urban growth and retaining value in developed areas, but not shoddy analysis.
Feb 25, 2011 @ 15:53:34
I’m with Adaptor, the writer gave no evidence that homes built outside of PFA’s are bigger and more expensive. The basis of his anaylis is based on an assumption. In Frederick County, homes within PFA’s such as Urbana or Frederick City on sewer and water are typically more expensive and have higher property taxes than similar homes outside of PFA’s.
Mar 06, 2011 @ 14:06:10
Except for the fact that a demographer ran the numbers and they were posted right in the graph?
>>>I’m with Adaptor, the writer gave no evidence that homes built outside of PFA’s are bigger and more expensive.
Feb 25, 2011 @ 19:11:58
Smoke and mirrots. Just another attempt from State to support its “Save the Bay” programs. No concrete data provided, just statements conjured up to make a case for the proposed septic bill in Annapolis.
Feb 25, 2011 @ 19:43:57
Are the commenters on this article all elementary school children? Why post here if you’re completely unfamiliar with even the most basic data about valuation and home size/sale price outside of PFAs?
By the way ‘Mitchell’, “Smoke and mirrots.”? Nice spelling.
Mar 03, 2011 @ 02:22:49
interesting conclusion…and I’m not surprised that I disagree with it. Where did the data come from…MRIS, tax records, deed transfers?
I have been to several of the MDDOP public input sessions and I really wish I could say that the interaction was worthwhile, but I can’t. The lack of understanding exhibited by “planners” as to how peoples real world desires, needs, and wants works in conjunction with how the development process actually works was glaring. Sad. But ppl jump on the band wagon for smart growth…”what a cool term, and yes we do need smart growth”. I try to cut right to the chase and ask “what is smart growth?”. Most haven’t a clue but like the term.
The social engineering aspect of this is troubling. The other aspect is the attempt at political redistricting using “smart growth”…whole other discussion.
This is the first time I have heard MDDOP use personal economics – how much your home will be worth – as tool in the smart growth toolbox.
Mar 11, 2011 @ 12:05:08
Andrew keep in mind you work at Maryland Department of Planning not Maryland Department of Propaganda. Even after the so called run up in value that you call attention to the homes outside of the PFA’s are worth 1/3 more than the homes inside of the PFA’s. Isn’t this an indication that the market is willing to pay more for houses outside of the PFA’s? Bottom line is that these half baked studies do little more than kill the credibility of MDP! And frankly that is probably a good thing!