American Institute of Certified Planners (AICP) Practice Exam

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What does land banking enable for future urban development?

Quick environmental reporting.
Immediate residential building.
Strategic land planning and management.
Reduction in housing prices.

The correct answer is: Strategic land planning and management.

Land banking primarily enables strategic land planning and management, allowing for a more organized and forward-thinking approach to urban development. By acquiring and holding land that may not be immediately developed, planners can coordinate the timing and nature of development to align with broader community goals, infrastructure needs, or market conditions. This process ensures that land is preserved for future use, which can be pivotal in directing growth patterns and accommodating future population needs. Furthermore, land banking helps prevent speculative price increases that can occur when land is in high demand. By actively managing land resources, planners can assess future needs and optimize the use of land based on projected urban growth and infrastructure improvements. This makes it a valuable strategy in urban planning, ensuring that development is not only reactive but also anticipatory, facilitating sustainable and efficient land use in the long run.