What is typically the highest and best use of most residential properties?

The highest and best use of most residential properties is typically the current use. This concept is grounded in the idea that the highest and best use must be economically viable, legally permissible, physically possible, and maximally productive. For many residential properties, this translates directly to their continued use as homes, which meets the needs of occupants and aligns with existing zoning regulations.

When properties are utilized as residences, they often generate stable rental income or serve as primary homes for individuals and families, which establishes their productivity in the current market. This use maximizes the property's potential value, as residential properties typically appreciate over time when cared for and maintained properly.

Other options, such as future development plans or investment options, may hold potential but often come with uncertainties, costs, or risks that are not present in the current use context. Additionally, commercial use may not be feasible due to zoning restrictions or a lack of demand in the immediate area. Thus, the most straightforward and effective way to appreciate and utilize residential properties is typically through their current residential use, making it the highest and best use.