How does urban sprawl relate to land prices?

Restricting land development can lead to an increase in land prices due to the principles of supply and demand. When land availability is limited because development is restricted, it creates a scarcity of suitable land for residential and commercial uses. This limited supply, combined with steady or increasing demand for land, often results in higher prices.

Furthermore, when regions impose stringent zoning laws or development controls, they effectively prevent new housing or commercial development, which can drive up competition for existing properties. As buyers compete for the limited options available, prices tend to escalate. This phenomenon is particularly pronounced in urban areas where demand for housing or business locations remains high but where restrictions on land use curtail the amount of new development that can occur.

Urban sprawl, on the other hand, typically involves the expansion of cities into rural areas, which can provide more land for development. While urban sprawl may lead to lower costs for land in the broader expanse, it is the act of restricting development that has a clear and direct impact on raising land prices.