RES 431 Lecture 5: 5_RES 431 M001 Petrova 2-6-17
10 May 2017
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Document Summary
There are many complications that are usually: spillover effects from nearby land uses ( Absolute monopoly disney land and the real estate around it. Features of real estate that cause market distortions : spillover effects from nearby land uses, uniqueness of location (absolute monopoly, unknown quality or condition of existing structures always see the real estate when. Instability of surrounding land use you want to buy it. Resulting market failures in real estate: monopoly, utilities, holdouts owners that are holding up the sale to the investor because they know the investor need the land. Spillover effect (new malls, noises: uncertainty of residential values. Comprehensive planning as a solution to market failure. Cul de- sacs a road where you have houses arrayed in a circle at the end of it. They sell at a premium because more isolated . Mixed use investment more difficult to manage but brings more revenue. Zoning hat can be done/built on the land.
