According to the American Farmland Trust, which has conducted more than 100 Cost of Community Services Studies across the country, towns lose money when open land is converted to residential developments:

Residential developments increase demands and pressures on the town's infrastructure (e.g., the school system, the water supply, the fire and police departments, and the roads) and force towns to increase expenditures to meet demand. As a result, residential developments cost more in municipal services than they generate in revenue, which ultimately results in a net revenue loss for the town.

Contrary to popular myth, residential developments do not increase the tax base and lower taxes.