How Impact Analysis Can Accelerate Real Estate Development Approvals

Key Takeaways

This section was generated by AI and then edited by staff. The rest of the article is not AI-generated.

• Proof is more important than promises. Real estate developers who get projects approved consistently are the ones who provide clear, data-backed evidence of a project’s benefits, rather than just speculation.
• Economic impact analysis is now a “must-have.” The development approval landscape has shifted, and economic impact analysis is no longer a luxury. It’s an essential tool for demonstrating a project’s value to the community.
• Focus on quantifiable metrics. Municipalities want to see measurable data on three key areas: economic benefits (jobs, taxes), community impacts (infrastructure use, quality of life), and risk mitigation (market demand, financial viability).
• Communicate value through data-driven storytelling. Developers with a competitive advantage are those who can effectively use data to tell a clear and persuasive story about how their project will benefit the community.

After 15 years of experience working with public and private real estate developers, I understand that getting new projects approved can feel like navigating a maze with changing rules. However, I have also found that the developers who consistently sail through approval processes aren’t just the ones with the deepest pockets or the best-connected attorneys. They’re the ones who show up to municipal meetings with compelling data that tells a clear story about community benefits.

In 2025, that story is more important than ever. With housing shortages reaching crisis levels in communities across the country and public sentiment increasingly focused on measurable outcomes, economic impact analysis has evolved from a “nice-to-have” to a “must-have” for successful development.

The 2025 Real Estate Development Approval Landscape: What’s Changed?

The real estate development approval process has fundamentally shifted over the past few years, and if you’re still approaching it the same way you did in 2019, you’re likely experiencing more friction than necessary. Here’s what I’m seeing in our work with communities and developers across the country:

Communities are demanding proof, not promises. Municipal officials and community members want to see concrete evidence that your project will generate jobs, increase tax revenue, and improve quality of life, not just speculation about potential benefits. They’ve heard too many pitches that didn’t deliver on their promises, and the information and data are more available than ever before.

Public-private partnerships are powerful. As we discovered in our recent work with communities across the Northeast, developers have unprecedented opportunities to partner with public entities on projects that serve multiple objectives. However, these partnerships require detailed financial and economic analysis to ensure all parties understand the value proposition.

The good news is that these changes create tremendous opportunities for developers who understand how to document and communicate their projects’ value effectively.

What do Municipalities Want to See in 2025? (Hint: It’s all about the numbers)

After attending and presenting at countless municipal meetings, I can tell you that approval bodies want three things:

1. Economic benefits they can defend to their constituents.
2. Community impacts they can quantify.
3. Risk mitigation they can bank on.

Economic Benefits That Matter

When Camoin Associates conducts impact analyses for development projects, we focus on metrics that resonate with municipal decision-makers:

• JOBS: Job creation during construction and ongoing operations, including both direct employment and the ripple effect through local supply chains during the period of construction.
• TAXES: Tax revenue projections that show exactly how the project will contribute to municipal budgets.
• MULTIPLIER: Local spending multipliers that demonstrate how every dollar invested in your project circulates through the local economy.

Community Impact Quantification

This is where many developers miss the mark. It’s not enough to say your project will “improve the community.” You need to quantify exactly what that means with:

• Infrastructure utilization analysis that shows whether your project will strain or efficiently use existing services, and what you will do about it if there is not enough capacity
• Public service cost-benefit ratios that demonstrate the fiscal impact on schools, emergency services, and municipal operations
• Quality of life improvements measured through metrics like walkability scores, green space access, and housing affordability

Risk Mitigation Evidence

Municipal officials are inherently risk-averse, and for good reason—they’re accountable to voters. Solid impact analysis provides the evidence they need to confidently support your project and feel good that they are protecting public resources, including:

• Market demand validation that shows there’s genuine need for what you’re proposing
• Financial feasibility analysis that demonstrates your project’s long-term viability
• Scenario planning that addresses community concerns about potential negative impacts

Getting Started: What You Need to Know

If you’re considering impact analysis for your next project, here’s what the process typically involves:

• Project specifications and financial details: Investment amounts, construction timeline, employment projections, and operational plans.
• Market analysis data: Information about local economic conditions, comparable projects, and demand drivers.
• Community context: Understanding local priorities, concerns, and political dynamics that might influence the analysis approach.

Looking Forward: The Future of Real Estate Development Approvals

As we move through 2025, I expect to see economic impact analysis become even more central to the development approval process. Communities are getting more sophisticated about understanding and measuring economic benefits, and developers who adapt to this reality will have significant competitive advantages.

The question isn’t whether you can afford to invest in professional impact analysis; it’s whether you can afford not to. In an increasingly complex approval environment, data-driven storytelling isn’t just helpful, it’s essential.

Do you have a real estate development project where economic impact analysis could strengthen your approval prospects? I’d be happy to discuss how Camoin Associates might be able to help. Reach out to me at rachel@camoinassociates.com or 518-899-2608, Ext. 107.

Camoin Associates supports a wide range of economic development projects each year, and we understand how difficult it can be to plan and launch initiatives that achieve your team’s desired outcomes. This article is designed to help you pause, reflect, and prioritize.

Learn more about our Real Estate Development Impact Analysis Services

About the Author

Rachel Selsky, AICP, is the CEO of Camoin Associates, the nation’s only full-service economic development and lead generation consulting firm. She holds a Master of Regional Planning and a B.A. in Urban Studies and Planning from the University of Albany and is certified by the American Planning Association (APA). Rachel has more than 15 years of experience developing regional economic strategies and economic and fiscal impact analyses for clients all over the country.

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