Affordable Housing, Community Development, Reports and Publications

Connecticut Fourth in Nation in Land Share Percentage

Lincoln Institute of Land Policy
 

Connecticut ranks fourth in the nation in land share percentage, the share of the total home value in a state attributed to the cost of land. New data from the Lincoln Institute of Land Policy shows 51.4% of a home in Connecticut is attributed to the cost of the land it sits on. The average home value in Connecticut is $358,413, of which $174,224 is attributed to structure cost. The remaining $184,189 is the value of the land. Only California (54.7%), Hawaii (59.4%) and Washington D.C. (76.2%) have a higher land share percentage.

STATE

Rank

Home Value

Structure Cost

Land Value

Land Share (Pct)

DC

1

$636,235

$151,450

$484,784

76.2%

HI

2

$715,363

$290,616

$424,747

59.4%

CA

3

$433,955

$196,443

$237,513

54.7%

CT

4

$358,413

$174,224

$184,189

51.4%

Connecticut's neighboring states rank significantly lower, with Massachusetts' land share at 18.4%, New York's at 14.1% and Rhode Island's at 8.7%. Significantly, the structure cost - materials and labor - remains relatively equal across all states in spite of their different demographic, economic and geographic make-ups. The data shows that land costs are lower in states that allow higher housing density and/or have a greater supply of land.

The intervening variable in Connecticut is restrictive zoning, the practice of setting a minimum lot size for a dwelling. As minimum lot sizes increase, increasingly more low- and moderate-income buyers are priced out of home purchases. With structure costs remaining constant throughout all types of dwellings, the data shows that higher allowable density permits builders to spread the land cost over more units of housing, making each one more affordable.

There are 10 states tied for lowest land share of 5%, or approximately $8,700, of the total home value: Iowa, Illinois, Kansas, Michigan, Minnesota, Missouri, New Hampshire, Nevada, Ohio, Tennessee & Wisconsin.

To view the complete data, click here to download the spreadsheet.

 
 

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