Urban Real Estate Economics And Juxtaposes Them With Traditional Theories

“Words are not passive; indeed, they help to share and create our perceptions of the world around us. The terms we choose to label or describe events must, therefore, convey appropriate connotations or images of the phenomenon under consideration in order to avoid serious misunderstandings. The existence of different terms to describe gentrification is not an accident, neither is the plethora of definitions for it” (Palen & London, 1984, p. 6). SAY SOMETHING Peter Marcuse (1999) argues that, “how gentrification is evaluated depends a great deal on how it is defined” (p. 789). Defining gentrification properly is necessary for anchoring an analysis of neighborhood change, particularly in light of recent scholarly efforts to replace the term (to describe the process) with less critical names like: ‘urban renaissance’,

In the constantly changing economy of cities, the growth of city housing is oftentimes neglected. In “Cities Mobilize to Help Those Threatened by Gentrification” Timothy Williams recounts how gentrification has evolved over the years. Mentioning how cities have changed in order to appease the younger professionals, Williams shows how the city itself is in jeopardy due to the tax increases. Slowly loosing their faithful residents as well as historic culture cities face a big deal. Williams gives quotes from faithful residents, “…long time homeowners are victims of the success story”, (Williams 346). In “Cities Mobilize to Help Those Threatened by Gentrification”, Williams uses his credible quotes and modern statistics to generate the reader’s emotions, with desire to change how city officials go about gentrification in culturally infused cities.

Many large cities are experiencing skyrocketing rental/housing price because of the excessive demand and more importantly, the scarcity of land. San Francisco, as one of the most important financial centers in the world, is facing a serious dilemma due to its inflated rental/housing prices; people’s dissatisfaction over the government grow as they are excluded from the access to proper housing. San Francisco has the highest rents of any large city in the United States, which makes people, especially from low and medium income group, hard to acquire housing near their workplaces and force to commute from other regions of Bay area into the city. In other words, the high housing prices are pushing people as well as the productive industry out of the city. While people are accusing the government of being responsible for the failure of housing since it underestimates the rate of population growth, which leads to a shortage in the housing market. However, statistic shows that San Francisco actually built more than 30 percent more housing units per capita than New York City and Los Angeles in 2014. (Henry Grabar, 2015) It is because such shortage is artificially created by the policy makers to constraint land use, hence, increasing the supply of housing does not efficiently decrease the housing. The fundamental cause of this imbalanced housing market is the poor allocation of land use.

Supply and demand play a major role in the value of real estate. The forces behind supply and demand include physical, economic, political, sociological, and location issues. The location of the subject property within St. Johns provides many positives with respect to value. First, the proximity to local highways not only provides for ingress and egress, but gives the subject neighborhood exposure to potential tenants or clients. It provides a quick means of transportation for employees or customers. Second, the location of St. Johns in proximity to Lansing and the rest of Michigan is an advantage. This proximity provides additional workforce, complementary businesses, and suppliers.

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)

This theory describes how the “land based elites” are able to control the government and city to represent their interests. Part of this theory describes how local governments are often serve the interests of the elite who own land by passing policies that allow the value of the land in their cities to substantially increase. In the case of Williamsburg Brooklyn, New York City’s mayor approved the waterfront zone change from an industrial zone to residential zone in order to increase the value of the land and appease the developers of the land (Martucci,

Human Geographer David Ley defines Gentrification as “the transition of inner-city neighborhoods from a status of relative property and limited property investment to a state of commodification and reinvestment.” (Ley Artists 1) In the past 50 years gentrification has swept over cities across the globe and has completely reshaped the way people think about why people live in certain neighborhoods. British sociologist Ruth Glass coined the term gentrification in 1964 to describe what was happening in the London borough of Islington, where Indian immigrants were being forced out in favor of creative young professionals. (Thomson). The term comes from the old english word gentry, which generally means wellborn well-bred and upper class people. For the most part of the last five decades gentrification has made large cities and downtown urban areas safer, more desirable for commercialization, more affluent, greener and more eco-friendly and has played a role in the vast change of demographics of many neighborhoods. This ‘urban renewal’ has been subject to many political debates, academic studies and research to figure out its positive and negative impacts on the socioeconomic nature of the cities it takes place in. Here on the eastern seaboard of the US we see gentrification in every city from Center City Philadelphia, to Chelsea, to Columbia Heights in DC. However this movement to gentrify is not reserved for the

4.) The weakest parts of the article arise from two areas. Firstly, the authors focus very heavily on the physical representation of these areas in order to determine reinvestment and level of gentrification which ignores non-physical issues of investment and property value. Secondly, the authors, due to having such a small sample size, only focused on a small list of factors and could have taken more local political and social issues into consideration during their

We have already seen increase prices for properties in the inner city. As the prices continue to rise, this will make houses less and less affordable. Bernard Salt (2001), declare that this revival will only last another 10 to 15 years, after that the market demand will fade. More important even if the trend doesn’t change, it will mean that more high-medium density dwelling needs to be constructed to satisfy the demand. Consequently, this will threatens the available green space in the metropolitan area.

Gentrification has been a controversial issue both in urban planning and politics primarily due to the displacement of poor people by the rich folks (Shaw & Hagemans, 2015). Many individuals have viewed gentrification as an illegal act that should be avoided at all costs. On the other hand, another group of people believe that gentrification is the way forward to promoting growth and development. With such contrasting ideas, this paper is going to take a look at gentrification from a positive and negative perspective, its effects, and how it can be prevented or contained. Apart from this, the paper will also address the following questions.

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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.

In this report, the question “How much of the changes in the median selling price of homes in a city can be explained by the changes in median income of that city?” is answered. Home ownership is an important aspect of one’s life stages, and home prices are determined by demand and supply. The demand curve is affected by the one’s income, such that as one’s income increases, one is more willing to pay a higher price for the same quantity of goods (Baye & Prince, 2014). However, there are many other factors that might affect the demand curve, e.g. no. of children, in the household, the perceived quality of education in the school district, or the number of job positions (filled or open) around the city. According to Burda

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.

With reference to one property development site within the City of London, critically appraise the extent to which that development delivers successful modern property development whilst at the same time respecting the historic sense of identity of the City of London as identified by Glinert.