INC NEWS - New residential development doesn't pay for itself (Wake/TJCOG/NCSU report)

[John Schelp]

New residential development doesn't pay for itself.

Here's text from a Wake County/TJCOG/NCSU report...

"The ratio for the residential sector is 0.65,
implying that for each dollar in property tax and
other revenues generated by residential land uses, the
county spends $1.54 to provide services supporting
those land uses. In other words, the residential
sector is on balance a net user of local public
finances... This contradicts claims that are sometimes
made that residential development is a boon to county
finances due to its expansion of the property tax
base."

You can read the full report here...

http://www.onencnaturally.org/pages/obj/WAKE-COCS.pdf

I'd only add that the more expensive the house, the
better is the revenue/expenditure ratio.
Unfortunately, the logical conclusion of many would be
to build more Macmansions while discouraging
affordable housing. (Another reason why we need a good
mix of housing types in Durham.)

best,
John