Effects of Zoning on Housing Option Value.

The zoning by-law has been changed based on the city requirements and feeling necessity on living space improvement. For example, fifty years ago, the most single family dwelling was constructed as bungalow with one bath, no garage and living area about 1000 SqFt, but the transition shows two storey dwelling with garage, more bathrooms and living area more than 3000 SqFt in the subject property area.

The problem is there is inevitably a lack of housing, due to homelessness and influx of people. Without enough housing, the prices of the homes will be very expensive; however, if there is not a balanced mix of luxury and affordable housing, those already living there will be forced to leave because they will not be able to maintain taxes and other increases that will be tacked on to housing expenses. In order to make this process a bit more feasible, New York created the “Inclusionary Zoning program.” This program required “that developers set aside a certain percentage of units in a new development as affordable units.” The issue with this zoning ordinance is that although it was stated as a “requirement” the city kept it as a voluntary process.” With the ordinance being voluntary and developers with a capitalist mentality, many developers opted out of adhering to the ordinance. Although the residents of New York may not be in the power broker or decision-making classification, many of its inhabitants have been there for many years. Unless there are efforts to make this ordinance mandatory, there will be much opposition to keep new development out.

In order to achieve these goals The following laws must be implemented by the government of Canada in all three levels of government. With the increase of development in the GTA, the housing market will decrease. Therefore, the municipal government will need to reduce development costs while Fast-tracking zoning approvals for residential development. It is also important that they streamline other approval times for all stages of projects to aid in the

Inclusionary zoning is a tool to help accomplish affordable housing. The main goal of it is to build a certain percentages of house but to where the houses can be afforded by middle/low income earners. Incentives are provided to act as cost offsets and include density bonuses, tax abatement, and reduced parking charges. Density bonuses motivate developers to have additional units which result in an increased profit margin. On subscription to the inclusionary zoning, benefits accrued eventually lower costs that would have otherwise been charged on the developers. This technique provides a sustainable method of dealing with housing shortage (Dietderich 13). The municipality, however, cannot force developers to set a particular minimum price and therefore the government can only provide incentives to developers to voluntarily provide the units for low-income earners.

According to Jack Poe, master of science real estate appraisal and state certified real state appraiser in Texas, “According to Babcock’s classic study, the primary effect of Houston’s lack of zoning has been…high income neighborhoods have been preserved by the employment of private covenants and low income neighborhoods have sought in-home commercial development (like a small repair shop) as a way to add value to otherwise low value homes. (Babcock 1966, P. 28).” What all this means to the modern developer in Houston is that they have more freedom to develop what they perceive is needed. The remedy to Houston’s continuing discourse over zoning is a democratic zoning process that is not completely laissez-fair in its approach, as currently exists with the no zoning policy, but remains participatory in order to safeguard the “neighborhood commons” whilst still maintaining this membership and stewardship of the land. The no zoning land policy, as it currently stands in Houston, in part meets Aldo Leopold’s criteria for the land ethic because the citizens are members of the land and it is treated as a shared land-community rather than a commodity controlled by government official(s) or political elites. However, to meet the criteria for the land ethic in whole, it must incorporate a flexible zoning policy that would seek to protect the “neighborhood common” (citizens interests and resources) while still respecting the land-community, which Olmsted values so

The real estate division was estimated to have a fair value of $13,890,000. This was determined by totaling the number of lots expected to sell within the next four years and multiplying it by the price per lot of $180,000. After determining total lot sales, a 20% discount rate was applied as suggested by current market conditions. Given the unique nature of the real estate development, it is not believed that there are any comparable developments to find a market multiple.

Macroeconomics is an excellent tool for the analysis of the housing industry as something like a capital good, as a home is considered to be, cannot easily be studied in a short-term platform. Real estate is a good that costs several times more than an average persons annual income, in the United States that number is typically 7 times as much, and in the United Kingdom that number is 14 times as much. Several factors of both supply and demand directly impact the housing market on a macroeconomic scale. (Business Economics, 1)

Houston has been known to be sort of a freebie city compared to other cities in America. With no zoning and only moderate government intrusions into how property owners use their land . Houston the most affordable major city in America, with housing costs that are less than half of most other major urban areas. This freedom has also created an ingenious and growth-friendly environment that is creating tens of thousands of new jobs each year. People argue that weather the lack of zoning is disorganized, far-out or self-efficient. As for our political culture gives us another unique aspect than most. Dr. Elazar's "Individualistic-Traditionalistic" political culture goes into detail about three categories

This case involves an investigation of the factors that affect the sale price of Oceanside condominium units. It represents an extension of an analysis of the same data by Herman Kelting (1979). Although condo sale prices have increased dramatically over the past 20 years, the relationship between these factors and sale price remain about the same. Consequently, the data provide valuable insight into today’s condominium sales market.

Table 2 presents estimation results of our empirical model represented by equation (5). The first column shows estimation results only including housing prices and traffic congestion index without other control variables. The result presents that traffic congestion growth is negatively associated with growth in median housing prices. Such results are slightly changed when including control variables or fixed-effects terms, but almost consistent and robust as shown in the model (2) through model (6). Since different locations and different time influence growth in housing prices (see Figure 5, again), model (6) that include locational and time fixed-effects is the best fit to explain the relationship between congestion growth and housing price

When new development or renovations on empty lots begin the citizens of the communities start asking amount them who will be the beneficiary of the gentrification. Even the displaced of mom and pop businesses are disappear. And the neighborhood no longer can afford to leave on such communities. The question is how does gentrification impact the government? Well, government plays a big role in serving low income to citizens. It create apartment that an affordable to them. It doesn’t impact the government on a negative way because they generate new policies and programs that help the people from the community. So, many types of local and states polices are design to accommodate affordable houses, even though the cost are increasing. One of the several program that the government had is one called “inclusionary zoning” (IZ). The characteristics for this program are: “(1) whether they are mandatory or voluntary, (2) what size or type of development projects are affected, (3) the required share of affordable units, (4) the

Burgess’s concentric zone theory was presented in 1924. He presented a descriptive urban land use model that divided cities in a set of concentric circles expanding from downtown to the suburbs. His representation came from Burgess’ observations of various American cities, especially Chicago. Burgess model assumes a relationship between the socio-economic status of households and the distance from the Central Business District. The further from the district, the better the quality of housing, but the longer the commuting time. Making this Accessing better housing is done at the expense of longer commuting times and costs as well. According to Burgess, urban growth is a process of expansion and reconversion of land uses, with a tendency of each inner zone to expand in the outer zone. According to Burgess’ theory, a large city is divided in six concentric zones, Burgess’s model has its cons according to critics. It is said to be a product of its time. That is, it won’t work the same with present cities. The model was developed when American cities were growing very fast and when motorized transportation was still uncommon as most people used public transit. Thus the concept cannot be applied to those from the second half to the twentieth century where highways have enabled urban development to escape the reconversion process and to take place directly in the suburbs. The model in this case was developed for American cities and is limited elsewhere.

Government policies and subsides have a sizable impact on property price, and demand. The government can temporarily boost demand with tax credits, deduction and subsidies. From the customers point of view

The data for the second test to be conducted by our group consists of lot sizes of the residential properties that are up for sale in Toronto and Vancouver. The samples are represented in m2 (metres squared; area of the land in which the residential properties are built on). The data taken are based on the properties that are up for

A difficult characteristic to understand about the housing market is how a price is given for a particular house. That price will be designated to that particular house alone. All houses have various pricing, so I can’t always assume that one will cost more or less than any other. The pricing for houses vary based on their characteristics. Each characteristic must be analyzed to determine its contribution or detraction toward the price. I have taken some of these characteristics and modeled the relationship between them and the price of real estate for a specific area.