Calif. Real Estate Economics - 5&6

The real estate market

P. 99 - variables that affect land value (externalities chapter 6):

Proximity to amenities

Neighborhood improvements

Streets and freeways

Annoyances

Crime

Panorama

These get capitalized into land value and rent.

Not so labor. Why?

If funds come from taxes on income and sales, mostly from wages,

worker-tenants get double-billed.

P. 105-6: cities with rent control:

Los Gatos, San Jose

Attempts to manage growth have been unsuccessful in dealing with congestion.

Growth controls increase land prices.

“Managing” growth, i.e. limiting it:

urban growth boundaries, limit lines (San Jose)

Zoning, development impact fees, building permits

Chapter 6

U.S. Housing Market

Housing starts a leading indicator.

Derived from permits.

The housing cycle leads the business cycle.