A tool used in urban planning and real estate development determines the permissible building area on a given site relative to the land area. For instance, on a 10,000 square foot lot with a maximum allowed ratio of 2, the total floor area of a building cannot exceed 20,000 square feet. This metric plays a vital role in controlling building density and shaping urban landscapes.
Managing density impacts a city’s infrastructure, transportation networks, and overall quality of life. Historically, these regulations have been employed to prevent overcrowding, ensure adequate light and air circulation, and preserve a city’s character. Effective utilization of such tools contributes to sustainable urban development and helps maintain a balance between built environments and open spaces.