Financial Analysis

We identified conservation development (CD) subdivisions and comparable conventional development projects in unincorporated areas of five Colorado counties, representing a broad range of economic, demographic, ecological and housing characteristics. Our goal was to identify types of subdivisions that represent the range of choices that a landowner or developer has when seeking to subdivide a piece of land, or the alternative choices that a home buyer has when seeking to purchase a home in a rural residential development. We applied a detailed database of residential sales transactions to compare home prices and absorption rates between CD and conventional subdivisions. Our preliminary results suggest that there are significant sales price premiums (20-29%) for homes located in CD subdivisions, while controlling for other factors that influence the sales price of a home (e.g., number of bedrooms) (Hannum et al., in press, Journal of Sustainable Real Estate).