The Maximizing the Value of Land study, developed by the Indianapolis Metropolitan Planning Organization (IMPO), examines how housing development decisions influence long-term municipal fiscal sustainability. Drawing on fiscal modeling and analysis across Central Indiana communities, the study identifies strategies that can help local governments strengthen public finances while continuing to provide high-quality services
Building Fiscally Sustainable Communities
The Maximizing the Value of Land study equips regional policymakers with quantitative evidence that housing development decisions have measurable, long-term fiscal consequences for local governments.
Compact, higher-density development patterns consistently deliver stronger fiscal outcomes than lower-density patterns across multiple metrics: revenue generation per acre, infrastructure maintenance costs, and service delivery costs. Rental housing typologies have fiscal advantages over ownership housing typologies in the existing statutory environment
Policy Implications and Strategic Recommendations
The changing statutory landscape constrains the options available to Central Indiana municipalities to balance their budgets while continuing to provide high quality municipal services. This study points the way to development strategies that can be part of the solution. Based on its findings, local governments should consider:
- Encouraging higher density development that maximizes assessed value per acre while minimizing the per-unit cost of infrastructure extension.
- Prioritizing infill development where possible, to leverage existing infrastructure and reduce infrastructure maintenance costs
- The inclusion of high quality rental housing options, which are net contributors to both municipal and school district budgets. The fiscal contributions of higher density and rental housing developments can be invested flexibly. For example, they can be dedicated to meeting existing service obligations, supporting business development, or funding quality of life improvements or programming, such as on community main streets or in the park and recreation system. Alternatively, municipal revenues from new development can be utilized to lower the property tax burden on existing taxpayers. This study’s fiscal modeling framework may itself be a methodological foundation that local governments could utilize to assess evaluate future growth scenarios and analyze the fiscal implications of development proposals.
Read the Full IMPO Study
Explore the complete Maximizing the Value of Land study for detailed methodology, fiscal modeling, case studies, and additional findings related to housing development across Central Indiana.