The Economic Perspective: “Does Residential Growth Pay for Itself”

This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program asks if residential growth pays for itself. Mike, many communities in North Carolina are growing very rapidly.   Much of this growth is in the form of residential subdivisions.  Yet some say these developments don’t generate enough local tax revenue to pay for the needed services, like public safety and school buildings.  Is this a valid concern?

Mike: Summary Answer

  • Yes
  • If look at subdivision alone, may not provide enough revenues
  • Yet usually will cause non-residential development
  • When add those, get closer
  • Another issue is property value assessment
  • May not be up to date
  • Recommendation – if keep up to date, also get closer
  • I’m MW

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.