EQUITY Coops like where John Lennon & Yoko Ono in NYC are still affordable.
Very common in 1970 – 1980; LAND is owned by non-profit corporation; UNITS are market with SHARES in LAND. Pre-strata/condo & formal coop legislation. More complex entangled now.
Have not found much Canadian data networks on this. Federal and Provincial funds for retention incentives & new starts do not have these as qualifying property YET.
CMHC plus financial institutions are reluctant to offer mortgages Grants, & Realtors do not understand/ not too keen to take on. WHY?
Isn't the argument of people like Glaeser that by removing restrictions on building tall buildings you can effectively remove land scarcity? Everybody could turn their single home into a block of flats, and/or turn their backyard into a block of flats, and it's really only building costs that would be the limiting factor.
And in such a scenario the number of "property developers" would go from (the well-connected) few to (the non-connected) many, thus avoiding the sort of supply control that currently keeps prices high.
Yes, that is the way Glaeser and others explain their reasoning. However, then never get to the mechanics of why property owners will start "panic building" and undercutting each other on price. I argued here that this process never happens in property markets (outside of a market crash).
I don't understand why "panic" is needed to build more. If I own an inner-city terrace house worth $2m, and I could knock it down and build 6 apartments in its place and sell each one for $1m I'd make a lovely profit. Isn't that all the incentive property owners would need?
And if that incentive was good enough for me it would be good enough for my neighbour, and her neighbour too. We'd get a lot of terrace houses knocked down and apartments built in their place. The end result would be that all these new apartments would start coming down in price until they got close to:
(cost of original house + construction costs)/number of new apartments
How fast will you sell your 6 apartment? All on one day? Will you wait months? What if prices are falling? What if your neighbour is trying to sell 6 new apartments at the same time? These are the questions that determine how fast potential new supply will come to market. I try and explain the underlying economics of this problem in this paper https://osf.io/7n8rj/
EQUITY Coops like where John Lennon & Yoko Ono in NYC are still affordable.
Very common in 1970 – 1980; LAND is owned by non-profit corporation; UNITS are market with SHARES in LAND. Pre-strata/condo & formal coop legislation. More complex entangled now.
Have not found much Canadian data networks on this. Federal and Provincial funds for retention incentives & new starts do not have these as qualifying property YET.
CMHC plus financial institutions are reluctant to offer mortgages Grants, & Realtors do not understand/ not too keen to take on. WHY?
Isn't the argument of people like Glaeser that by removing restrictions on building tall buildings you can effectively remove land scarcity? Everybody could turn their single home into a block of flats, and/or turn their backyard into a block of flats, and it's really only building costs that would be the limiting factor.
And in such a scenario the number of "property developers" would go from (the well-connected) few to (the non-connected) many, thus avoiding the sort of supply control that currently keeps prices high.
Yes, that is the way Glaeser and others explain their reasoning. However, then never get to the mechanics of why property owners will start "panic building" and undercutting each other on price. I argued here that this process never happens in property markets (outside of a market crash).
I don't understand why "panic" is needed to build more. If I own an inner-city terrace house worth $2m, and I could knock it down and build 6 apartments in its place and sell each one for $1m I'd make a lovely profit. Isn't that all the incentive property owners would need?
And if that incentive was good enough for me it would be good enough for my neighbour, and her neighbour too. We'd get a lot of terrace houses knocked down and apartments built in their place. The end result would be that all these new apartments would start coming down in price until they got close to:
(cost of original house + construction costs)/number of new apartments
What am I missing?
How fast will you sell your 6 apartment? All on one day? Will you wait months? What if prices are falling? What if your neighbour is trying to sell 6 new apartments at the same time? These are the questions that determine how fast potential new supply will come to market. I try and explain the underlying economics of this problem in this paper https://osf.io/7n8rj/