What Is A Feasibility Study Of Real Estate

In 2011, the Los Angeles Human Right to Housing Collective joined together with citywide residents to protest unfair housing practices, and increasing rents at Los Angeles City Hall. Over the past four years, Los Angeles residents have seen rapid increases in rent, which is leading to more and more people moving out of L.A. in the hopes of finding more affordable living arrangements. The three percent rental increases that Los Angeles residents are accustomed to have been climbing this past year, and in 2016 many Angelenos could be seeing a four or maybe even five percent cost of living increase. Studies from the U.S. Census will show that Los Angeles renters occupy not even 50 percent of Los Angeles county housing units. In comparison to the percentage LA renters are taking home per paycheck, it is now becoming more affordable to buy property in Los Angeles, rather than rent.

A report prepared by the Economic Roundtable, Rental Housing 2011; The State of Rental Housing in the City of Los Angeles, noted that the city’s rental property had increased due to foreclosures that had started during the 2008 recession and been converted to rental property. Although this increased the options for renters, the incomes of family households had been decreasing since 1990. In this report, Daniel Flaming and Patrick Burns state, “Over the past decade, rent as a share of income has shifted from being barely affordable to predominantly unaffordable for renters (2012). They also note that the majority of renters in this area pay 30% to 50% of their income on rent. This is compounded by the problem of the increase of

Shortage of housing supply, especially in the coastal areas, is the critical issue that drives housing affordability crisis in California. California’s major coastal metros (such as Los Angeles, San Francisco and San Diego), where about two-thirds of Californian live, is lacking in sufficient housing to accommodate all the people who want to live there . For example, in 2015, there were 133,000 jobs created in the Bay Area while only 16,000 units of housing added there . In addition, the construction of new housings in California’s coastal metros, from 1980 to 2010, was low from both national and historical standpoints. During the past three decades, the number of housing units in the typical U.S. urban center grew by 54%, compared with 32%

“I make really good money and it’s frustrating to me that I can’t afford to live close to my job,” she stated. The housing prices in Los Angeles, San Francisco, San Jose, and San Diego have increased as much as 75 percent in the past five years.

People in gentrifying neighborhoods tend to move more often than those in non-gentrifying neighborhoods. People with high credit scores that move out of the neighborhood more frequently and often to wealthier parts of the city or suburbs. It’s more difficult for low income residents to move into gentrifying neighborhoods. Divringi noted that the city’s “most” vulnerable residents are less likely to move into gentrifying neighborhoods because of the higher costs (Gillespie 1).

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.

As gentrification of housing stress continues, Local Government Areas (LGA) will lose lower income groups and assimilate into a predominance of higher income groups, effectively homogenizing the population and decreasing diversity. This trend will drive the housing market price up, decrease housing affordability and deter outsiders into joining the community. The existing housing units will experience financial hardships, housing stress, and a gradual deprivation of a means to cope with increasing basic living costs. In order to combat this ongoing issue, speculative approaches by the City have been in consideration.¬¬¬¬

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.

The second economic concept in this article relates to supply and demand. Long Beach is currently facing a housing crisis. There is not enough housing to accommodate its residents. The demand for housing is far greater than the supply, which has caused rent prices to skyrocket over the past few years. Long Beach simply does not have enough housing to accommodate all of its residents. When the Land Use element was first written in 1989, there were 44,000 less residents. City officials believe that adding more housing density could help alleviate

The cost of housing is high in California. Home prices are much higher than they are in other densely populated states. By 2015, the

Riverside is California’s 4th largest county by population offering real estate values and community characteristics very few southern California locations can match let along compete, when it comes to selecting a location to call home. Within in this vase valley surrounded by rivers, mountains, and deserts, it may be the most diverse location and good reason for over 2 million people deciding to purchase residential homes. Although the area is still developing and market trends for real estate fluctuate form month to month, Riverside CA real estate is recovering and expanding residential development throughout the region as one of the largest and most effective transportation corridor linking states within the US and connections global shipping lines.

Originally a movement started by artists who moved into these neighborhoods for their affordability, real estate developers and urban planners take advantage of this increased demand for residence as an opportunity to convert once dilapidated buildings into luxury housing units. These once lifeless neighborhoods are given business, increased jobs, and a “safer” atmosphere. However, complying with the basic rules of supply and demand, as demand for housing in these neighborhoods increases, housing prices also go up. As once affordable housing prices hit astronomical rates, lower-income families that once lived in these neighborhoods are eventually forced out when they simply cannot afford to pay rent

Additionally, he employs hedonic price analysis to describe the relationship between prices and neighborhood composition under current housing market conditions, which is a concept that I will be exploring in my paper. A defect in this source is that in some of the studies that Harris refers to, some studies only analyze the racial factors that affect a neighborhood and then the other ones that do consider the nonracial factors fail to come to a proper conclusion about what causes the lower housing prices in areas with higher Black populations. There is no study given that considers both racial and nonracial factors and has appropriate conclusion, which can affect the viability of many of the studies used in the source. However, a benefit of this source is that it addresses my three variables that I will be exploring – median gross rent, employment rates, and occupancy status of housing

Every individual whether they are aware of it or not, base their decision-making on some form of statistical data. Simple everyday decisions are made through rationalizing a problem or opportunity, forming a hypothesis, analyzing information, and determining a decision based on the gathered information. For the purpose of practicality, Team A has chosen real estate market data gathered from the website for the Statistical Techniques in Business and Economics (2008) textbook to formulate and define a chosen problem, attempt to delineate the purpose of the research into the variables that affect

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.