HOUSING

1
HOUSING COMMUNITY DEVELOPMENT PLANNING
2
TOPICS

• ALLOCATION OF LAND
• HOUSING
• LOCATION, LOCATION AND LOCATION
• REAL ESTATE ECONOMICS
• NEIGHBORHOOD CHANGE
• CLASS QUESTIONS

3
Source City of El Paso Planning Department
4
Source City of El Paso Planning Department
5
HOUSING AS A BUNDLE
6
ALONSOS MODEL OF URBAN LAND MARKETS

• Paradox the poor live close to the center and
  the rich in the suburbs.
• There are two important attributes of buying land
  ( the land itself and location)
• The above paradox can be explained by the
  trade-off the household made between commuting
  (distance) and cheaper land
• Distance is a proxy to represent accessibility
  (to work) costs, then poor people tend to locate
  close to the center of the city.

7
THE REAL ESTATE MARKET

• Real estate as space (without a building) and as
  an asset (with a building)
• The difference between endogenous factors and
  exogenous factors. What kind of factor is
  planning?
• Housing is affected by micro forces (location
  specific) as well as macro forces (those that
  affect the profitability or use)
• Why are homes close to the mountain worth more
  than those away from the mountain?

8
VALUING LOCATION Mountain View
Sq feet const Bedrooms Bathrooms Year built
Distance from The mountain
Neighborhood TASK scores
Value of Undeveloped land
9
EP REAL ESTATE
Dependent Mth Rsq D.f. F Sigf
b0 b1 VALUE LIN .615
44 70.27 .000 68529.2 3.0168
10
EP REAL ESTATE MARKET
Dependent Rsq d.f. F
Sigf b0 b1
VALUE .710 44 107.48
.000 -32991 71.8823
11
EP REAL ESTATE MARKET
12
EP REAL ESTATE
13
SOME ELASTICITIES
14
HUDS MODEL OF NEIGHBORHOOD CHANGE
STABLE values and incomes In balance
Declining falling values
Improving rising values
1 Healthy
2 Incipient decline
3 Clearly declining
4 Accelerating decline
5 Abandoned
15
NEIGHBORHOOD CHANGE
COLLECTIVE ACTION
INDIVIUDAL ACTIONS
INSTITUTIONAL ACTIONS