Land Value Analysis

Land Value Analysis uses geospatial methods to assess, model, and map the economic value of land based on location attributes including accessibility to employment and services, zoningZoningZoning is a land use planning tool that divides geographic areas into zones with specific permitted uses, building st... designations, neighborhood quality, environmental conditions, and proximity to transportation, schools, parks, and commercial centers. Unlike building appraisal, which focuses on structural improvements, land value analysis isolates the value contributed by location and spatial context. GISGISGeographic Information Systems (GIS) enable users to analyze and visualize spatial data to uncover patterns, relation...-based hedonic price models quantify how individual spatial factors contribute to property values by analyzing sales transaction data against geographic variables. Spatial autocorrelationSpatial AutocorrelationSpatial autocorrelation measures the degree to which values at nearby locations are similar (positive) or dissimilar ... methods account for the tendency of nearby properties to have similar values. Geographically weighted regression captures how value drivers vary across different parts of a metropolitan area. Mass appraisal systems used by tax assessors apply these spatial models to estimate values for all parcels in a jurisdiction. Applications include property tax assessment that ensures equitable taxation based on market values, land value capture policies that fund infrastructure by recouping value increases created by public investments like transit stations, site selectionSite SelectionSite selection is the analytical process of evaluating and choosing optimal physical locations for new stores, facili... analysis that identifies undervalued locations with appreciation potential, and urban renewal targeting that focuses redevelopment incentives on areas where land values suggest market failure. Land value maps reveal spatial inequality and inform affordable housing policies.