The study examined the impact of masonry ordinances on four comparable Chicago suburbs, finding that the two communities with masonry ordinances had higher property values, greater tax revenue, continued population growth, and housing affordability comparable to those without such ordinances. The adoption of masonry ordinances appeared to financially benefit communities without negatively impacting affordability or restricting growth.
2. University of Michigan Masonry
Ordinance Study
Selection of Case Study Communities
• Research is focused on Chicago area
• Chicago’s suburbs have been among the largest supporters of
masonry ordinances in the country, given the area’s historic
preference for masonry building
• The development trend in Chicago is closest to the national
average among all MSAs that are known to contain masonry
communities
• Researchers studied four comparable suburban Chicago
communities
– Two with masonry ordinances- Orland Park and Tinley Park
– Two without masonry ordinances- Hoffman Estates and
Streamwood
3.
4.
5. University of Michigan Masonry
Ordinance Study
• Hypothesis
– The imposing of masonry ordinances, by setting
standards for construction quality, will enhance
the durability and aesthetic value of local
properties, increase the attractiveness of the local
community, and thus benefit both local residents
and local business
6. University of Michigan Masonry
Ordinance Study
Research Questions
• Housing price effects: to what extent might the adoption of
a masonry ordinance increase property value in the
community?
• Housing cost effects: to what extent might the adoption of a
masonry ordinance increase construction cost and reduce
operating cost?
• Local community impacts: to what extent might the
adoption of a masonry ordinance expand the local fiscal
revenue base and improve the quality of life for existing
residents while also inhibiting new growth and ‘pricing out’
low-income or minority households?
• Local business impacts: to what extent might the adoption
of a masonry ordinance increase the patronage of local retail
stores and expand local sales revenue?
7. • Data
– 25 years of data from the case study communities
– Primary Focus on examining community changes
during the period of 1990 to present
• Examining real estate transactions
• Tax records
• Census data
• Sales receipts
University of Michigan Masonry
Ordinance Study
8. University of Michigan Masonry
Ordinance Study
• Property Values
– Property values in communities with masonry
ordinances are higher than those in non-
masonry ordinance communities
– The price of home differentials among the four
municipalities continues to increase with the
masonry ordinance communities of Orland Park
and Tinley Park being significantly higher
– Conclusion: The adoption of a masonry
ordinance results in an increase of
property values for homes in a community
9. University of Michigan Masonry
Ordinance Study
-
50,
000
100,
000
150,
000
200,
000
250,
000
300,
000
350,
000
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
O rl
and t
i
nl
ey H of
f
m an S t
ream w ood
Price of the Sample Constant-Quality Property
10. University of Michigan Masonry
Ordinance Study
• Taxes
− Orland Park and Tinley Park have larger tax bases than
over half of the cities in Cook County
− Non-masonry ordinance communities experienced
relatively slow growth in sales receipts
− Orland Park and Tinley Park charge their residents lower
municipal tax and fees in order to pay for public services
and community improvements
− Conclusion: The adoption of a masonry ordinance
results in an increase in tax revenue for
communities both through property taxes and
sales tax receipts. This results in lessening the
property tax burden for community residents
11. University of Michigan Masonry
Ordinance Study
Sales Receipts Per Capita (Standardized by 1990 Population)
-
5,
000
10,
000
15,
000
20,
000
25,
000
30,
000
35,
000
40,
000
45,
000
50,
000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
HOFFMAN ESTATES ORLAND PARK TINLEY PARK STREAMWOOD
12. University of Michigan Masonry
Ordinance Study
• Growth
– The population of both Orland Park and Tinley Park continue
to grow at a faster rate than the non-masonry ordinance
communities
– Orland Park and Tinley Park had a population growth rate of
43% and 30% from 1990 to 2000 respectively
– Hoffman Estates and Streamwood had growth rates of 6%
and 17% respectively from 1990 to 2000
– Conclusion: The adoption of masonry ordinances
results in continued quality growth, and does not
restrict growth
13. Population and Housing Growth
2000 Median
Family
Income
2000
Population
Population
Growth Rate
Housing Unit
Growth Rate
90-00
HOFFMAN ESTATES $73,685 49,495 6.0% 5.0%
STREAMWOOD $68,771 36,407 17.0% 20.0%
ORLAND PARK $77,507 51,077 43.0% 53.0%
TINLEY PARK $71,858 48,401 30.0% 36.0%
Median Suburban
Community in Cook
County
$61,670 13,196 5.2% 4.6%
14. University of Michigan Masonry
Ordinance Study
• Affordability
– Mortgages in Orland Park and Tinley Park are similar to
other suburban Cook County communities
– The median rental cost in Orland Park and Tinley Park was
found to be comparable with other non-masonry
communities
– The median rental burden for housing in Orland Park and
Tinley Park is also quite close to the other suburban
communities in Cook County
– Conclusion: The adoption of a masonry ordinance
does not significantly increase the owner cost burden
or the rental burden for residents, and does not make
housing in the community any less affordable than its
neighbors
15. Housing Affordability: Owner-Occupied Housing
Median Cost Burden
among all Suburban
Communities in
Cook County
Orland Park Tinley Park
Households With
Mortgage
22.8% 22.20% 22.20%
Households Without
Mortgage
11.80% 11.70% 11.20%
Measured by Median Monthly Owner Costs as a Percentage of
Household Income in 2000
16. For More Information:
The Brick Industry, Southeast Region
8420 University Executive Park
Suite 800
Charlotte, NC 28262
Phone: 1-800-622-7425
Fax: 704-510-0042
Website: www.gobricksoutheast.com