Overview
I reviewed two of the Huber, Messick, and Pivar textbook’s chapters on “Real Estate Economics.” The two chapters I will cover are chapters thirteen and fourteen. In chapter thirteen you will learn about planning and land use control and in chapter fourteen it will discuss development economics.
Key Concept from Chapter 13
One key concept I learned from chapter thirteen was regarding inclusionary zoning from the textbook (page 383). inclusionary zoning frequently mandates that a certain proportion of its units be constructed for lower-class households. Usually, a clause states that the apartments must always be within affordable means. Certain communities do accept cash payments.
Key Concept from Chapter 14
The second important idea I learned from chapter 14 involves bargain lots, as stated in the textbook (page 414). We have to keep in mind that location is important to value. A low-cost lot situated in an unfavorable area may result in a property taking much longer to sell or rent than one in a desirable one. This could result in interest costs of thousands of dollars.
Key Concept from Chapter 13 or 14
The third key concept I learned is also from chapter 14 of the textbook regarding credit (page 416). When purchasing commercial and industrial development, buyers consider accessibility and cost of borrowing. When finance is difficult to obtain or prohibitively expensive, decisions on expansion or relocation requiring taking on additional debt are likely to be postponed.
Summary
Overall, I enjoyed reading chapters thirteen and fourteen of this textbook. I learned more about inclusionary zoning, bargain lots, and credit. I think it does an amazing job covering all of the topics it mentioned.