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became significantly lower than the annual allocation, the Growth Management Ordinance has not had any impact on housing production or cost. The impact of growth management on the cost of housing in Pleasanton over the life of the program is not clear. It is acknowledged that growth management may add a layer of processing to development review if the number of development applications requires decisions related to borrowing, reallocation and other growth management approval options. The added time to process a development adds cost to a project. However, the cost to complete a protect is not likely to affect the price of homes, as the price of housing is based on what the market is willing to bear, and the added costs are more likely to reduce the profit for the land owner rather than increase the price of a housing unit on the market. As shown in the graph below, the annual difference in the cost of housing in Pleasanton compared to the cost of housing in Alameda County has varied over the period of time the Growth Management Ordinance has been in effect. The difference in the cost of housing in Pleasanton and the County was greater in 2011 than when growth management was implemented in 1996. The gap widened notably during the boom years around 2005 and again around 2009 when values in Pleasanton did not drop as dramatically as the remainder of the County. It is not possible to say whether growth management was the cause of this difference in housing costs. Scarcity of developable land in the City, high-scoring schools, abundant services and recreational opportunities, attractive appearance, easy accessibility to major employment centers, and desirable location have likely been the primary factors driving housing prices in Pleasanton. Ultimately, the cost of housing depends on what people are willing to pay for those attributes relative to the cost in other communities. City of Pleasanton Housing Element BACKGROUND—February 2012 98