Urban Policy Sustainability through a Value-Added Densification Tool: The Case of the South Boston Area

Abstract

Over the past decade, urban density has been growing faster than ever, forcing high-density expansion. The aim of this study is to verify whether urban density is accepted as a sustainable value-added quality, internalized in the willingness to pay on a buildable per square feet basis. To explore the relationship between land prices and densification processes, this study focused on a low-density area, which recently went through a densification policy process with the approval of a new zoning tool. The study analyzes land price trends on a 144-Acre of area, located in the South Boston Submarket, identified as the Dorchester Ave Area. I analyzed land transactions in this area between 2012 and 2021. I also examined land price variations before and after the approval of a densification plan in correlation with the overall trend of the real estate market in that area. The results suggest that density is a value-added feature that affects land prices. Indeed, a higher density leads to higher values per buildable square feet. Densification policies have a strong positive impact on land transaction prices. Community and developers valued density with a greater willingness to pay, internalizing the economic, social, and environmental sustainability benefits. This phenomenon should be taken into consideration by local public authorities implementing their zoning tools.