REAL EST 306 Study Guide - Urban Sprawl, Externality, Smart Growth
30 Oct 2014
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Chapter 5: government controls and real estate markets. Intro: most re property in the u. s. is privately owned (doesn"t mean effective land use) causes runoff, pollution, light, etc. ) Buyers of property have incomplete info: hard to determine sturdiness/safetiness of buildings once built. Locational monopolies certain parcels required for certain buildings: gov. must intervene in land use o. 3 types of gov powers: police powers, property acquisition, property taxation. Externalities: unintended/unaccounted consequences of one land user upon others (ex: shopping center. Power of gov. to regulate land use: police power: establishes gov. right to enact laws protecting health/welfare/safety of public. Building codes, zoning, planning, regulating land use, construction standards: monopoly: misallocates resources by overpricing goods/services and producing less output than is efficient. In re, less common most land uses have substitutes. In interest of community to make them monopolies costly to make competition.
