Real Estate Economics

Daniel 

Bre-139, Real Estate Economics

05/28/24

Huber, Walt

Chapters 13 & 14

Overview

Both of these chapters touch on the development and how to properly use land without any problems. It is important to follow certain criteria and plan steps in order to prevent any issues that can occur. Some key terms that can apply to this are environmental problems, the development history and profit.

Key Concept from Chapter 13

ENVIRONMENTAL PROBLEMS ARE ONE NO CITY CAN AFFORD DUE TO THE EFFECT IT CAN HAVE. “ENVIRONMENTAL PROBLEMS HAVE SLOWED DEVELOPMENT AND IN MANY CASES, STOPPED IT ALTOGETHER. IN PERIODS OF HIGH UNEMPLOYMENT, ENVIRONMENTAL CONCERNS OFTEN LOSE OUT TO ECONOMIC CONSIDERATIONS” (HUBER, 380). ENVIRONMENTAL PROTECTION IS ALSO USED BY MANY TO LIMIT GROWTH OF A CITY.

Key Concept from Chapter 14

The development industry is very much needed and when they are processing work that can only mean the city is getting bigger. “The development industry is made up of builders and subcontractors who are often in and out of business due to changes in the market. The industry is fragmented, with both large and small developers” (Huber, 404). In many cases high property taxes on land can encourage development within a city.

Key Concept from Chapter 14

WITH ALL THE PLANNING AND DEVELOPING IN LAND THE NUMBER ONE RETURN IN IT ALL MUST BE SOME FORM OF PROFIT. “DEVELOPERS WILL BUILD IF THEY BELIEVE SELLING PRICES WILL EXCEED THE COST OF LAND AND CONSTRUCTION. IF THEY OVERBUILD, THEY MUST WAIT FOR THE DEMAND TO CATCH UP WITH SUPPLY OR REDUCE THE PRICE TO INCREASE THE DEMAND” (HUBER, 411). THAT IS WHY PLANNING FOR ANY DEVELOPMENT MUST BE WELL PREPARED BEFORE TAKING ANY ACTIONS.

Overview

by Daniel Martinez

Planning for the use of a land or property is very much needed to guarantee profit will be made enough to cover all expenses. A team is required and needed to make a development happen as well as a growing city.

Real Estate Economics

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