Atlanta’s Urban Sprawl and What It Means for Land Values
If you search for examples of urban sprawl, Atlanta is likely to top the list. With no significant geographic barriers, the city has expanded in every direction—and anyone who’s experienced the traffic can confirm it. While this growth has historically benefited landowners, the reality isn’t as simple as it seems. Development does drive land values, but growth doesn’t affect all properties equally. The answer, much like explaining the infield fly rule (and yes, Simmons was safe), is complicated.
In this article, we’ll explore how Atlanta’s urban sprawl creates "transitional land" and what that could mean for property owners.
What Is Transitional Land?
Transitional land refers to property that is in the process of shifting from one primary use to another—most commonly from rural or undeveloped land to urban or developed purposes. At first glance, this definition seems straightforward. However, predicting the future potential of raw land is anything but simple.
Numerous factors influence whether a piece of land will transition smoothly to a higher-value use. Some of the key considerations include:
Zoning regulations
Topography and flood plains
Infrastructure and utility access
These elements help determine the future development potential of a property. Being located within the path of growth is important, but it doesn’t guarantee that a property is development-ready. Let’s break down the factors that could affect landowners navigating this gray area of real estate.
Constraints to Growth
1. The Political Environment
One of the most significant obstacles to development is the local political climate. Regulations, zoning laws, and anti-development sentiment can derail potential projects. This is particularly common in emerging markets, where local residents (often referred to as NIMBYs—“Not In My Backyard”) pressure elected officials to slow or block new development.
Even if surrounding properties have been successfully rezoned in the past, there’s no guarantee that a similar project will be approved today. That’s why understanding the political landscape is essential when evaluating your property’s development potential.
2. Infrastructure Challenges
Political approvals aren’t the only hurdle. Infrastructure limitations, such as inadequate sewer systems, can halt growth. For example, a small municipality might experience rapid development, only to hit a wall due to limited sewer capacity. Resolving these issues can take years, delaying or even canceling high-density development projects. Before tying up your property, you need to assess the full scope of infrastructure requirements and potential constraints.
Horse Farm or Neighborhood?
Consider this example: Two identical horse farms, one located in the city of Milton and the other in the city of Alpharetta. Both are adjoining cities in the high-growth, high demand north Atlanta suburbs, so it’s reasonable to assume their highest and best use would be for residential development. But without evaluating the specific constraints, that assumption could be costly.
In Milton, stringent zoning regulations make high-density development difficult, if not impossible. Conversely, Gwinnett County, while not without challenges, offers a more feasible path for rezoning and residential development. As a result, one property might remain a horse farm, while the other could be transformed into a new residential neighborhood.
Why Partnering with Land Experts Matters
Navigating the complexities of transitional land requires expertise. Misjudging the constraints or opportunities could lead to missed valuations, incorrect pricing, or poor market strategy. That’s where Mulberry Land Company can help.
With decades of experience, our team provides expert guidance on identifying the highest and best use for your property. We help you position it strategically to maximize its market value. Ready to learn more? Contact Mulberry Land Company today to discuss your transitional land opportunities.