By Aaron Shoyer, Housing Matters, December 11, 2019
The high cost of land poses a significant barrier to producing affordable housing. Land acquisition accounts for 15 percent of total development costs, with some local estimates as high as 35 percent (PDF). Housing is expensive to construct and maintain, so every dollar saved on land or other costs helps affordable developments pencil out. Leveraging public land for affordable housing allows local jurisdictions to make a substantial contribution to more affordable housing without imposing (PDF) additional taxes or fees on residents.
Seattle seeks best value, not highest market value
When most governments identify surplus property, they auction it off to the highest bidder and use the revenue to fill budget holes or add to the coffers, but what if the land could meet other pressing public needs? Recently, Seattle transformed its land disposition process from one that prioritizes revenue generation to one that furthers the city’s affordable housing goals.
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