Property values: Scarcity of land drives up real estate prices in area

As development land becomes more scarce in Springfield and surrounding communities, the price for residential lots, and thus housing, continues to escalate.

"In Nixa, you can hardly buy a (residential) lot for under $18,000," said appraiser Pam Long, owner of Pam Long Appraisal Services. A similar lot would have sold for $10,000 to $12,000 five years ago, and $15,000 three years ago, Long said.

Long said that from the developer's standpoint it is not cost effective to pay more than $8,000 or $9,000 for the raw land for use in residential development. This reduces the amount of land available.

The scarcity and demand for raw land have made prices too expensive to build homes for average buyers, according to Tom Rieken, agent with Murney Associates.

"It's harder and harder to find land for houses that people can afford," Rieken said.

Less land is available for commercial construction as well, according to Dave Murray, commercial broker with RB Murray Company.

"There is not much HC, highway commercial, land available," he said.

Murray said although the city sales tax has been a real help, the infrastructure has not kept up with the growth in Springfield, which narrows the choices in commercial properties available. Also, public improvements have been paid by the private sector with the cost going back into the land, thus escalating prices.

Property values

Easy access and availability of utilities are the two main factors in land value. The extension of South National Avenue, for example, has had a positive effect on both residential and commercial property in that area. The widening of Cox Road also has improved land values in the nearby subdivisions that benefit from the improved roadway, Long said.

Factors that impact a specific building lot include variables such as the view, well-maintained surrounding properties, accessibility, proximity to shopping and the lay of the land, which determines what type of house can be built, Long said.

In some cases, commercial property close to residential area may be a deterrent, but Long said Springfield has done a good job in zoning, using buffer zones between strip centers, supermarkets and other commercial complexes and residential housing.

"Springfield has excellent zoning laws in place to protect residential growth," she said.

Joe Roberts, appraiser and owner of Joe R. Roberts Appraisal Service, said the widening of West Kearney Street and West Chestnut Expressway has enhanced land values in those regions.

"The roads look modern and with wider lanes and turn lanes the thoroughfares are much nicer to travel," he said.

Traffic, in some instances, can hurt residential property values. It may take longer for a house on a busy street to sell, Roberts said, but the price may not necessarily be lower than less-traveled side streets in the same area.

Land values also can be hurt by topography, drainage and flood plain areas, Roberts said. Steep grades add to construction costs and the cost to provide proper drainage can be very expensive, making development cost prohibitive.

In flood plain areas, some lots are declared unsuitable for building altogether, Roberts said.

The shape and size of a parcel also may hurt the price if the tract is too narrow or too small to build on, he added.

Heavy power lines and utility easements have an impact on land values. Certain areas may be unusable, thus reducing the value of the tract as a whole, Roberts said.

Zoning also can affect land values, Roberts said. If an area is zoned residential, for example, but is better suited for commercial and cannot be rezoned, it has a negative impact on the value of the property.