New Study Finds that Communities Benefit When They Build with Brick

A university study finds that adoption of masonry ordinances, which are local zoning requirements that specify a certain percentage of clay brick and masonry as the primary exterior building material, increases the value of property in a community and contributes to continued growth, without any significant increase in ownership or rental costs.

The study was commissioned by the Brick Industry Association (BIA) and conducted by University of Michigan's Taubman College of Architecture and Urban Planning. This research, the first of its kind, examined four suburban communities near Chicago to assess the impact that the adoption of a masonry ordinance has on housing prices and the fiscal health of a community. The study's methodology ensured that the research findings are relevant throughout the nation because the development trends in Chicago are closest to the national average, according to the study's "dissimilarity index" based on 1990 and 2000 census data.

"The research shows that masonry ordinances can ensure that development supports the long-term interests of the community while addressing the interests of both its citizens and the business community," said Dick Jennison, President & CEO of BIA.

"This study and its conclusions are significant in the context of the continuing discussion of masonry ordinances and growth in American communities nationwide," Jennison continued. Researchers examined two communities -- Orland Park and Tinley Park -- that had a masonry ordinance in effect for more than 10 years, and examined two comparable communities -- Hoffman Estates and Streamwood -- without a masonry ordinance, but with similar demographic, economic and housing profiles.

The study looked at four issues of importance to communities considering masonry ordinances -- affordability, property values, growth and taxes.

Findings include:

• Masonry ordinances do not drive up home or rental costs: Based on 2000 Census data, the research found that the median owner cost for households with a home mortgage in Cook County's suburbs is approximately 22.8 percent of household income. The costs in Orland Park and Tinley Park actually run slightly below the average at 22.2 percent. Homeowners without a mortgage in Orland Park and Tinley Park also have lower cost burden than many of their neighboring communities. When the average rental burden was examined, researchers found the median rental burden in Cook County's suburbs is 24.4 percent of household income, with Orland Park and Tinley Park running slightly lower at 23.4 percent and 24.1 percent respectively.
• Masonry ordinances create lasting value for homeowners and communities: The adoption of masonry ordinances improves long-term property values for homes in a community. When compared to the town of Streamwood, the research found that a constant-quality residential property in Orland Park could sell for 95 percent higher and 128 percent higher than in Tinley Park. When compared to the town of Hoffman Estates, properties located in Orland Park would sell at a price 79 percent higher than Hoffman Estates, with properties located in Tinley Park selling at an average price that was 112 percent higher.
• Masonry ordinances ensure quality and lasting growth: Researchers found that Orland Park and Tinley Park continue to grow at a faster rate than the comparable communities studied that do not have masonry ordinances in effect. Orland Park and Tinley Park had a population growth rate of 43 percent and 34 percent respectively from 1990 to 2000, while the median growth rate among Cook County's suburbs was just 5 percent. The two comparable communities identified for the study, Hoffman Estates and Streamwood, had growth rates of 6 percent and 17 percent respectively in the same time period.
• Communities realize long-term value and reduce the overall tax burden for citizens: The research found that Orland Park consistently outperforms other communities in Cook County in terms of total sales receipts, while Tinley Park continues to experience a rapid increase in the amount of sales receipts. The result is a reduced property tax burden for residents.

The study looked at more than 25 years of data from the case study communities, examining real estate transactions, tax records, census data, and sales receipts, with a primary focus on analyzing the community changes between 1990 and the present.

"A masonry ordinance helps communities avoid that 'urban sprawl' look by diversifying housing design, but also encourages long-lasting positive externalities that lead to strong growth," said Kathleen Fenton, Trustee of the Village of Orland Park.

"Tinley Park and Orland Park are perfect examples of what a masonry ordinance can do to the long-term value of a community."

Complete findings of the University of Michigan study will be available early next year.

To learn more about the study or obtain an Executive Summary, please visit http://www.gobrick.com/planning