Oregon’s Urban Growth Boundary is one of the most consequential factors in Oregon land value — and one of the least understood by landowners outside the development industry.

What Is the Urban Growth Boundary?

Oregon’s Urban Growth Boundary system was established under Senate Bill 100 in 1973. Every Oregon city is surrounded by a UGB — a legally defined line separating land designated for urban development from land protected for agricultural and forest use.

Inside the UGB — land is designated for eventual urban development and commands significantly higher per-acre values than agricultural land outside it.

Outside the UGB — EFU and Forest zoning apply, protecting land from development and preserving its agricultural character and value.

How the UGB Directly Affects Your Land’s Value

Land immediately adjacent to — but outside — an expanding UGB carries a development speculation premium that often does not appear in standard per-acre farmland comparisons. Oregon law requires UGBs to be periodically reviewed and potentially expanded to accommodate 20-year population projections.

For clients whose land has been included in a Metro Urban Growth Report or UGB expansion study, the value implications can be significant and are frequently missed by advisors who rely on automated valuation tools.

The Farm Deferral Difference on Either Side of the UGB

Land outside UGBs carries up to 10 years of farm deferral back tax liability. Land inside UGBs carries only 5 years. On a 100-acre parcel the difference between a 10-year and a 5-year calculation can exceed $20,000.

Getting Accurate Value Near a UGB

Accurate valuation near a UGB requires understanding the Metro Urban Growth Report, current land use designations, status of pending zone changes, and the realistic development timeline. I provide this analysis on every Oregon land valuation I conduct near an urban boundary.

📞 503-949-5025 | ✉️ al@cronemiller.com | HomesForSaleSalemOregon.net

Al Cronemiller | Oregon Land Specialist | MORE Realty | Salem, Oregon