Value Of Rural Water - Need Sources

[Mark Eaton]

First time poster.

I'm looking for research and/or data concerning the effect of a new rural public water system on rural property values. Other than my own data, I was hoping to site some more substantial studies. I figure that Rural Development or EDA or ERS (USDA) might have some info.. I plan on calling our Economic Development District office tomorrow.

Any links, sources, studies, etc. would be greatly appreciated.

Thanks

 

[Terrel L. Shields]

the effect of a new rural public water system on rural property values

which came first the chicken or the egg?

In our area, the local town added it and as far as I can see there is no difference between land values, but the difference lies in a developer being able to build a rurban subdivision and sell lots - something pretty much impossible with separate wells.

The chicken egg argument is that in an area of increasing housing, rural water is created to service the growth..or it is the other way around? Build it and they will come.

People with vested interests in the system will always say that it enhances land values. I say it does very little, if anything...and as a property owner who has a mile of their crappy lines on my place...all undersized 4" pipe meaning I cannot even get cheaper home insurance because the line is too small for a fire hydrant...I wouldn't cry if the Mayor who ramrodded this stepped out in front of a speeding drill rig.

 

[Wayne Tomlinson]

In my county there is no zoning, nor building codes.

Some 30 years ago, I developed a small subdivision outside of town. One of the big benefits that I had, was that I had a connection to the city water supply line as it came into town.

In the late 70's as Jimmy Carters 20% interest took over everything, building died for several years. By the time that people began to build again, the rural water system came on and soon spread over the entire county.

People even in very out of way places could get on the water line, and that essentially spelled the near end of my lot sales.

Under this situation, rural water made a large difference in the value of small parcels in the rural landscape.

I have no data, probably the water district has some stuff available, but it just might be a little bit biased.

You might contact Charles Burton, a local attorney who has been legal counsel and association lawyer for the entire development in 2 or 3 counties.

His # is217-32-4303. at Rushville, IL

Wayne Tomlinson

 

[Mark Eaton]

I think sometimes its the chicken, other times its the egg.

Our first rural water system started the same time as Wayne T's, but our county still doesn't have full coverage. The latest expansion is just nearing completion. After the first system went in, folks were able to build (or drag in) houses where they never could before. As Wayne mentioned, rural water seemed to make a large difference in the value of small parcels in the rural areas. It has also led to many rural subdivisions (small acreage) that would not have been possible otherwise.

Thanks for the contact.

 

[Mike Boyd]

To be marketable, a property must have water. When doing your appraisal, you should be comparing the property with other comps that have water. Therefore, no value difference.

 

[Greg Bell]

Water is water.The meter for rural is VERY important.(REO'S need to be checked for a meter) Usually they cost thousands.My rural water bill is much cheaper than city water , weird , eh..

 

[Mr Rex]

Th biggest difference is that having a public water source versus wells is that it allows more houses per acre. Around here the minimum site size that will support a well and septic and allow for proper separation and the septic replacement field is about .75 acre on land that percs well. If there is public water available, then the sites can be 0.5 acres.

 

[Richard Carlsen]

Having worked in a low density rural market with spots of city water in the small metro areas, I have never seen a difference between city water and well water. I have heard more than a few people talk about the good taste and quality of their well water but never about the fine chemical tastes in most city systems.

IMNSHEO, there is no change in value going either way. It is a non-value issue as long as the supply is good and constant. I would not be drawn into giving an opinion other than to say that there is really inconclusive evidence that city water adds or subtracts from value......unless there is a high degree of ground water contamination or very offensive taste/smell to the well water. Then you have another issue that is strictly local that must be determined in the local market and not from any national data base.

 

[Terrel L. Shields]

To be marketable, a property must have water.

actually cisterns are a way of life in some rural communities. I know in SW Colorado, rural properties catch runoff or buy potable water as wells outside the river valleys rarely produce or are very alkaline. Rural systems are not common in the far reaches of the county. It is more nuisance than anything else. Water is high per month but a well, relatively cheap to operate, has a high initial investment. My well is 24 years old and still has the same pump & pipe. I rebuilt the well house and at 265' cost me roughly $10/ft. would be about $25/ft. now.

 

[Restrain]

Around here, wells run $20 per foot, aquifer is appx 400' down. Price includes pump, etc. Now, I bought some land back a few years ago in a rural area. Now, the rural water system ran down the south side of the FM highway, our subdivision was on the north side of the FM highway. Cost was prohibitive for the water system to drill, and the meters were $2500 to boot, so the developer gave everyone $4000 towards a well since he couldn't get the water system. However, a lot of people are now drilling wells to avoid having to deal with the water systems (rationing, high costs, etc). Actually, wells are now more attractive than water systems in our market.

Hope this helps.