Value of Land Banking

Value of Land Banking

Land banking is a very valuable process. It offers a solution to the common real estate problems of foreclosed properties and abandoned buildings. But what is land banking exactly and how can it benefit communities?

What is a Land Bank?

A land bank is basically a public or community owned entity. This entity specializes in acquiring, managing, maintaining and repurposing empty, foreclosed and abandoned properties.

Value of Land Banking

What are the benefits of land banking and how can it deliver some return to the community?

Increase in tax revenues

By turning useless properties back into valuable ones, and taking the properties back to the market, local governments will be able to collect taxes again. This leads to more money back into the community.

Cost Savings

Another great benefit is cost reductions for local governments who will not have to spend money on emergency protection, inspections or police services, given the fact that the property is functional again.

Maintenance Services

Neighborhoods can also directly benefit, given the fact that these entities provide many maintenance services to vacant properties, immediately increasing the land value of the surrounding neighborhood.


Land banks can also take immediate action by demolishing buildings beyond repair.


Entities taking advantage of the land bank system are able to acquire additional funding.

Parcel Assembly

Land banks are also able to purchase multiple properties in a less valuable neighborhood and turn these into valuable assets again.


The land banking system ensures that the pressure is off the local government, since responsibility is carried by the private or community-owned entity.


Land banking entities are able to shorten foreclosure times. The additional advantage is that these entities can make vacant building available again more quickly

Affordable Housing

Many of the land banking properties end up in the hands of non-profit community organizations, which will directly benefit low-income families.

Land banking has many benefits, not only for the people investing in them, but also for the people in the community.