skip to main content

To offer a suggestion or report an error on the Natural Resources and Parks' Web site, please contact Fred Bentler, webmaster.
Transfer of Development Rights - TDR - in King County, Washington State

TDR Market Information

Just as with other commodity markets like food and oil, the Transfer of Developments or TDR "market," is driven by supply and demand. Landowners of sending sites create the supply of development rights when they choose to put a conservation easement on their property in exchange for TDRs to sell and transfer to other areas. Developers using development rights to increase density at receiving sites create the demand. To see TDRs currently for sale, check out the TDR Exchange.

The market price of TDRs is set by four factors:

  1. The price individual developers are willing to pay for a TDR – that is, an increment of density such as an additional unit/house in their development project. This will vary by location and development project;
  2. The price at which individual rural landowners are willing to sell their transferable development rights;
  3. The amount of TDRs readily available in King County’s Program (i.e. the landowner TDR supply);
  4. The development industry’s interest in buying additional density in King County (i.e. developer TDR demand)

TDR prices have ranged from $8,000 to $30,000.

The most recent sale price was $26,000 per TDR in first quarter 2008

Development rights are most often bought and sold through private party transactions; under limited circumstances they may be purchased from the King County TDR Bank.

Private TDR Market Trends:

  • Average of 10 transactions per year
  • Average of 108 TDRs bought and sold annually
  • $6.75 million exchanged between private developers and private landowners
  • 550 TDRs allocated to sending site landowners since the year 2000
  • 330 TDRs redeemed by developers for increased density in receiving site development projects since the year 2000
  • Current market Supply is 220 available TDRs

TDR Market Analysis – the Good and the Bad – as of December 2008:

  • Given current economic conditions – that is, the downturn in the local real estate market and difficulties developers face with financing – the TDR market has slowed and softened in 2008. Simply put, the current demand for TDRs is low as developers struggle to sell their current stock of houses. Subsequently developers – both large and small - are cautious about new development projects and often times are choosing to not proceed with some projects that were previously planned;
  • The 2009 TDR market will likely reflect many of the same trends observed in the latter half of 2008 as the housing and financial markets continue to try and stabilize;
  • The good news is that the TDR market, over the medium and long terms (3-10 years), has tremendous potential for growth. In a couple years, when the housing market strengthens in King County, as it will undoubtedly do as a regional and international employment center, developer demand for additional density via TDR will also rise;
  • By the year 2020 King County is expected to absorb 350,000 new residents. King County is committed to using TDR as a mechanism by which developers can provide this new housing for these future residents

To help you understand and participate in the TDR market, the King County TDR program offers:

Related Information

Related Agencies