Unveiling the Importance of Zoning Understanding in Acquisition and Development
Understanding zoning is crucial for acquisition and development. Without knowing what you can build on a property, you only see potential cash flow and not the totality of its value and limitations. Unit Density is especially useful when comparing across residential properties.
The Power of Unit Density in Residential Investments
Regarding residential investment, Unit Density is one of the most important metrics. Knowing how many units you can build across a neighborhood helps predict future population capacity. Potential units can also be compared to the historical construction timelines to generate a thesis around the speed of growth.Â
Navigating Investment Strategies: Renovation vs New Construction
For project types, renovating might be best if the current building has more units than zoning allows. If the existing building is 1/10th of the zoning allowance, it might be best to save for new construction.
Understanding Unit Density at scale can also help with powerful narratives around land constraints, risk, and capacity. Â
More will be revealed,
