Real Estate Economics 156, Foldvary, SCU

Explain concisely and sufficiently.

36 pts each:

1. Why is housing so relatively expensive in Silicon Valley?

2. What are the income-tax advantages of real estate ownership?

3. Explain the economic effects of taxing land value, taxing improvements and taxing the transfer of real estate titles.

4. How are private communities such as hotels and condominiums similar to and how are they different from municipal governments?

5. What does “highest and best use” of real estate of real estate mean, and how would one estimate it? Explain how a real estate appraiser can separately estimate the land value and the improvement value.

6. What is the role of real estate cycles in the business cycle?

7. Explain the capitalization of public goods and productivity into site values and rentals.

8. To be asked in class.