Real Estate Economics

Coskun, Yener. (2012). A Brief Analysis of Turkish Housing Market. SPH Newsletter 10 (April): 10-12.

by Yener Coşkun, MRICS

Coşkun, Yener. (2012). A Brief Analysis of Turkish Housing Market. SPH Newsletter 10 (April): 10-12.

It is believed that home ownership offers
both material and non-material benefits
to the individuals and... more It is believed that home ownership offers
both material and non-material benefits
to the individuals and also society. However
this belief may be also related to
psychological/economical issues, economic/
financial agents enjoy to satisfy
the need of better housing. Turkey, having
nearly 68 percent home ownership
rate and also very dynamic housing
markets, is not an exception.

The Global Financial Crisis and the Turkish Housing Market: Is There a Success Story?

by Yener Coşkun, MRICS

Coşkun, Yener. (2011). The Global Financial Crisis and the Turkish Housing Market: Is There a Success Story?. Housing Finance International 25 (3): 6-14.

Turkish households traditionally prefer to invest
in real estate over other investment alternatives. more Turkish households traditionally prefer to invest
in real estate over other investment alternatives.
Demographics, immigration to urban areas, urbanization,
industrialization and urban renewals are
known to have significant effects on the domestic
demand for real estate in Turkey. Foreign direct
investments (FDI) have also led real estate markets
to grow since the 2000-2001 banking crisis.

The Establishment of the Real Estate Regulation and Supervision Agency of Turkey (RERSAT)

by Yener Coşkun, MRICS

Coşkun, Yener. (2011). The Establishment of the Real Estate Regulation and Supervision Agency of Turkey (RERSAT). Housing Finance International 25 (4): 42-51.

The Turkish real estate market has shown noticeable developments in recent years due to various reasons. In this... more The Turkish real estate market has shown noticeable developments in recent years due to various reasons. In this article, we are attempting to define the pros and cons of the Turkish real estate market. We are also questioning whether the deficiencies may decrease the potential value of the opportunities in the Turkish real estate market, and what kind of measures could be taken for the benefit of consumers/ investors in real estate. To analyse these issues, the paper aims to develop a problem-solution framework for the Turkish real estate market.For a better disciplinary framework for public/market based real estate activities, we suggest that a Real Estate Regulation and Supervision Agency of Turkey (RERSAT) should be established as a new government agency.

TEN GOLDEN RULES FOR REAL ESTATE PROFESSIONALS IN THE UNITED STATES. PRESENTATION BY BERNARDO MENDEZ LUGO TO THE HISPANIC REAL ESTATE ASSOCIATION OF MARIN COUNTY CALIFORNIA.

by Bernardo Mendez Lugo

Real Estate Market Efficiency. A Survey of Literature.

by Shanaka Herath

The hedonic price method in real estate and housing market research. A review of the literature.

by Shanaka Herath

The History of the Cheery Lynn Historic District

by Don Mertes

Cheery Lynn Today
Homes For Sale in Cheery Lynn
Dining and Shopping
Nearby Schools
Cheery Lynn History
Cheery Lynn Map

"You will find the tract on the west side of Sixteenth Street one and one-quarter miles north of McDowell Road.... more "You will find the tract on the west side of Sixteenth Street one and one-quarter miles north of McDowell Road. Just three miles north of the post office, in walking distance from golf links and Country club. There are two model homes on the tract, awaiting your inspection beautiful homes. There is an abundance of good water. The lots have a 60-foot frontage and can be bought for easy terms. Watch for the opening announcement!
DRIVE OUT TO CHERRY LYNN TODAY"

And drive they did- in Studebakers, Packard's, and Nash's. The year was 1928, Hoover won the White House, Earhart flew across the Atlantic, and Phoenix was in the midst of a building boom. The Cheery Lynn subdivision was one of several new neighborhoods brought to market. Its call to buyers drive out today heralded a new phase in the physical expansion of the growing city.

Laying the foundation
Two generation earlier, in 1867, Phoenix was born as a dusty supply outpost serving Camp McDowell to the northeast. Inspired by the traces of ancient Hohokam canals, speculators sensed
the potential for a fertile Salt River Valley. The canals were reconstructed, irrigation spawned agriculture, and settlers began to arrive. By 1870, a township had been planned and platted in square mile grids just north of the Salt River flood plain.

Central Avenue in Phoenix Arizona

by Don Mertes

Today on Central Avenue
Homes For Sale on Central Avenue
Dining and Shopping
Nearby Schools
Central Avenue History
Central Avenue Map

Located halfway between the major arterial roads 7th Street and 7th Avenue, Central Avenue is the dividing line for... more Located halfway between the major arterial roads 7th Street and 7th Avenue, Central Avenue is the dividing line for Phoenix’s east and west sides, while its intersection with Camelback Road has traditionally been a gateway to the heart of downtown Phoenix - an area rich with businesses, schools, arts institutions and residential districts.

But, instead of traveling south - into the beautiful downtown area - try taking a drive north.

A coveted Central Avenue address between Missouri and Northern usually comes equipped with a large front yard, flood irrigation and an estate-sized home.  Private pools and large guesthouses are also a common find.  These large old homes are also included in the North Central neighborhood, but bear special mention because of their Central Avenue address.

This is an area void of curbs, where Mesquite and Palo Verde line the road and where horses can still be seen trotting beneath the dappled shade on Murphy Bridle Path (below).  The air seems cooler, too – since most (if not all) of these homes have grassy front lawns and large trees on the property.

Central Avenue in Phoenix Arizona is a special address indeed.

The History of Campus Vista Historic District

by Don Mertes

Today in Campus Vista
Homes For Sale in Campus Vista
Dining and Shopping
Schools near Campus Vista
History of Campus Vista

Following a long tradition in the Valley of the Sun, the land that now encompasses the Campus Vista Historic District... more Following a long tradition in the Valley of the Sun, the land that now encompasses the Campus Vista Historic District was platted for subdivision from agricultural lands outside the Phoenix city limits (See “Historic Residential Subdivisions and Architecture in Phoenix, 1934-1963). Although this type of suburban development flourished in the 1910s and 1920s, the onset of the Great Depression curtailed many construction projects for much of the decade. As the Depression-era economy improved in the late 1930s, Phoenix resumed its suburban growth, particularly to the north, and a number of would-be developers purchased nearby farmland for more profitable residential development. While projects were cut short by restrictions against non-essential construction during World War II, they regained momentum in the early postwar era when Phoenix’s population boomed. Neighborhoods built during this time play an important role in understanding the transition between pre-war and postwar subdivision practices. Started in the waning years of the Great Depression and built out in the early postwar era, the Campus Vista Historic District illustrates these trends to a remarkable degree.

From Farmland to Suburban Development

In the late 1930s, Phoenicians considered the land around W. Thomas Road and N. 15th Avenues to be “out in the country” (Phoenix College Website). That perception changed when Phoenix College relocated to a 52-acre site on the north side of W. Thomas Road in 1939. Built with $750,000 in Works Progress Administration (WPA) funds, the college attracted residents and businesses to its environs and the agricultural landscape quickly shifted to suburban neighborhoods and commercial nodes.

Property owners in the vicinity of the new campus seized the opportunity to sell their farmland for more profitable suburban development. In the decade following the construction of Phoenix College, numerous subdivisions rose from the surrounding farmland. Among them were the six subdivisions, College Addition (1939), Campus Vista (1945), Mulberry Place (1946), Mocking Bird Manor (1946), Campus Manor (1946) and Aztec Place (1948), and remnants of a seventh, East Mulberry Place (1946), that make up the Campus Vista Historic District.

The Campus Vista Historic District in Phoenix Arizona

by Don Mertes

Today in Campus Vista
Homes For Sale in Campus Vista
Dining and Shopping
Schools near Campus Vista
History of Campus Vista

Phoenix College opened its ‘new’ campus on the edge of the city (15th Avenue and Thomas) in 1939. Today it mixes up... more Phoenix College opened its ‘new’ campus on the edge of the city (15th Avenue and Thomas) in 1939. Today it mixes up original brick buildings with modern companions making for a small but pretty college campus in central Phoenix. The homes of the Campus Vista Historic District grew up as a result of the new school, both east to 7th Avenue and North to Osborn. Ranch-style homes, built with the middle- and upper-middle class families of the day in mind, Campus Vista homes typically have 3 bedrooms and 2 baths. That’s a bit roomier than the pre-WW II ranches of Campus Vista’s older “suburban” sisters Fairview Place and Country Club Park.

In more recent history, Karia and Tom were looking for a home in the nearby Willo Historic District when they fell head-over-heels in love with their Campus Vista house—a remodeled red brick Ranch circa 1941. It’s one of the older homes in the neighborhood on an irrigated 1/3 acre with mature trees and a pool. They have a hard time leaving on vacation anymore, now that their own backyard offers a personal paradise.

The Brentwood Historic District in Phoenix Arizona

by Don Mertes

Today in Brentwood
Homes For Sale in Brentwood
Dining and Shopping
Schools Near Brentwood
History of Brentwood

The Brentwood Historic District lies at the heart of Phoenix Arizona, at nexus of the I-10 and the 51, yet feels cozy... more The Brentwood Historic District lies at the heart of Phoenix Arizona, at nexus of the I-10 and the 51, yet feels cozy and isolated from all the buzz. Bungalows and Tudors abound (reminiscent of the F.Q. Story Historic District on a smaller and more affordable scale) with more original features than we’ve seen anywhere. Real Estate for sale in Brentwood typically offers:

    Hardwood floors,
    built-ins,
    original doorknobs,
    and sometimes even the original kitchen cabinetry

These unique original features have withstood the test of time and resisted the whim of remodelers over the decades. If you are looking for authentic historic details, Phoenix’s Brentwood may just be your place.

New strategies for the housing industry. The consequences of socio-demographic change and reurbanisation

by Joris Ernest Van Wezemael

The History of Ashland Place Historic District

by Don Mertes

Published online at historicphoenix.com

Ashland Place was one of the most successful of the subdivisions that expanded the city’s boundaries during the 1920s.... more Ashland Place was one of the most successful of the subdivisions that expanded the city’s boundaries during the 1920s. While most of the other historic residential areas were built by multiple developers, contractors or private investors, Ashland Place was largely the product of Home Builders, Inc., one of the biggest and most prolific residential development companies in Phoenix in the early 20th Century.

The homes in Ashland Place Historic District were originally envisioned (by Mr. Heard of Heard Museum fame) to be large estates with acreage like those in neighboring Alvarado but were re-subdivided into smaller parcels in response to the Phoenix real estate market of the late 1920s. As a result, Ashland Place has compact lots with smaller and more affordable homes (68 of them according to the Historic Preservation folks at the City of Phoenix).

Classic Period Revival style homes– predominantly Tudor Revival, Spanish Revival and Bungalows with charming detail–can be found along Vernon and Hoover avenues. They average about 1300 square feet. The homes along Ashland Avenue were built a bit later and so are roomier Ranch-style homes that average closer to 1500 square feet and generally have 3 bedrooms and 2 baths.

The Ashland Place Historic District in Phoenix Arizona

by Don Mertes

Published online at historicphoenix.com

Ashland Place was one of the most successful of the subdivisions that expanded the city’s boundaries during the 1920s.... more Ashland Place was one of the most successful of the subdivisions that expanded the city’s boundaries during the 1920s. While most of the other historic residential areas were built by multiple developers, contractors or private investors, Ashland Place was largely the product of Home Builders, Inc., one of the biggest and most prolific residential development companies in Phoenix in the early 20th Century. Home Builders, Inc. was organized in February 1910 under the management of R.H. Greene and in association with the real estate firm of Greene and Griffin. The company was responsible for the construction and marketing of over 800 homes in Central and North Central Phoenix before its liquidation in 1939.

A key to their success was the use of an affordable, time payment plan for the purchase of residential lots and the construction of homes. This was a fairly innovative concept for the time. It brought national exposure to Home Builders, Inc. when a cover story of the National Real Estate Journal was published in 1924 about the company’s development, construction and financing methods.

The Ashland Place subdivision was platted in 1920, consisting of 76 lots along Hoover and Vernon Avenues between Central Avenue and 3rd Street. By 1926, 47 homes had been built on a speculative basis. Like the other subdivisions undertaken by Home Builders, Inc. at that time, the initial construction was Bungalow-style houses. In 1924, the company retained C. Lewis Kelley, an architect from Hollywood, California, and their construction began to diversify into other architectural styles.

Fourteen homes were added to the subdivision over the next two years, primarily picturesque Tudor Revival and Spanish Eclectic cottages, styles popularized by Kelley. The tract was heavily promoted by Home Builders, Inc. as part of their “specialty of building for folks of moderate means.” The early residents of Ashland Place reflect this emphasis with occupations generally of the middle class: salesman, bank teller, pharmacist, teacher, bookkeeper, tailor and engineer. The promotion of the subdivision was very successful. By 1931, only four vacant lots remained.

Real Estate Cycles: A Theory Based on Stock-Flow Structure of Durable Goods Markets

by Soheil Ghili

Submitted, Co-authored with Ali N. Mashayekhi

In this paper by means of a simple system dynamics model, we have addressed a cycle-producing mechanism in the... more In this paper by means of a simple system dynamics model, we have addressed a cycle-producing mechanism in the owner-occupied real estate market which has not been discussed in the real estate economics literature before. This mechanism is based on accumulation of supply and demand which arises from specific stock-flow structure of a durable goods market like the owner-occupied market. Comparison between our model and a famous model of rental market (Wheaton, 1999) shows that despite the rental market, in the owner-occupied market an increase in durability of buildings leads to more intensive oscillations. We also found the time for housing transactions to be a leverage point regarding the oscillations amplitude in the owner occupied market. Furthermore a model integrating the two markets is developed. Model analysis reveals that the interrelations between the two markets make the effect of some parameters on the rental market cycles different from what is suggested by the rental market model. This work uncovers the rich dynamic complexity of the real estate system and can serve as a good example of applying systems dynamic principles to complex real world problems.

Analysis of Office Rents Movements in Abuja , Nigeria

by Chukwuma Nwuba

Published in the Nigerian Journal of Education Volume 7, No 1. December 2008.

Abstract
Real estate business is important to national economies. It is a very important economic activity in... more Abstract
Real estate business is important to national economies. It is a very important economic activity in Nigeria’s urban areas, where private rental tenures predominate. This research evaluates office rental movements in the Central Area of Abuja, Nigeria, with a view to measuring the rental growth rates. The basic questions to determine are whether the rental growth rates are significant, and whether significant difference exists between the rental growth rates and CPI inflation rates. The results show that office rents maintained upward trend during the study period but the growth rates were lower than general inflation rates. Rental growth rates are statistically significant, but no significant difference exists between the growth rates and inflation rates. There is a strong positive linear relationship between time and office rents movement, which could be an indication that office rents grow significantly over time. Notwithstanding, there is need to carry out further research to ascertain the impact of inflation on rental growth and how rental growth compares with inflation in building construction costs in the area.

Late Life Second Move Housing Choices of International Retiree Migrants

by José M. Casado-Díaz

Gibler, K.M.; Casado-Díaz, J.M.; Casado-Díaz, M.A.; Rodríguez, V. y Taltavull, P. (2009) “Late Life Second Move Housing Choices of International Retiree Migrants”, International Journal of Housing Markets and Analysis, Vol. 2; nº. 2, 190-210.

REVIcVAL Project. Valencia Government GV048-530 supported the gathering of the data used in this research.

Purpose – Many international retirement migrants are amenity movers undertaking the first move in the late life course... more Purpose – Many international retirement migrants are amenity movers undertaking the first move in the late life course model of migration. The purpose of this paper is to examine second moves within the retirement destination community to test whether the model of late life course migration accurately portrays the motivations and housing choices local movers make after retiring to another country.

Design/methodology/approach – The paper combines secondary data and survey results to examine the composition of the retiree migrant population in the Alicante province of Spain. The socioeconomic characteristics and housing choices of those who have made a second move since retiring to Spain are compared with those who have not moved through a series of t-tests and chi-square tests.

Findings – The paper finds that those who have made a second move within Spain are somewhat typical of second movers in the late life course. They are likely to cite mobility or health problems as a reason for moving and appear to recognize the need for a home that provides living area on one floor. Yet, they are choosing to move within an area that does not provide them with access to informal family care givers.

Research limitations/implications – The data are restricted to retirees of two nationalities in one province of Spain. Further research is suggested in other locations and with retirees of other nationalities for comparison.

Practical implications – Because many international retirees do not plan to return to their countries of origin, they will create demand for formal in-home care services and supportive retiree housing in the near future in their retirement destination countries.

Originality/value – This paper provides understanding of a growing consumer housing segment in retirement destinations.

La migración de retirados europeos al mercado de vivienda español. Una evidencia sobre sus efectos (European retirees migration to the Spanish housing market - text in Spanish)

by José M. Casado-Díaz

Taltavull, P.; Gibler, K.M.; Rodríguez, V.; Casado Díaz, JM y Casado, M.A. (2009) “La migración de retirados europeos al mercado de vivienda español. Una evidencia sobre sus efectos”, CLM Economía, nº. 12, págs. 9-53.

La migración internacional de retirados no es un fenómeno nuevo entre los países de la Unión Europea. Hay un... more La migración internacional de retirados no es un fenómeno nuevo entre los países de la Unión Europea. Hay un buen  número de sociólogos que han descrito el proceso y sus implicaciones en las formas de vida, especialmente en los casos de migración de los hogares de jóvenes retirados desde los países del norte de Europa hacia los soleados del sur. Muchos de estos movimientos afectan al mercado de viviendas desde el mismo momento de la llegada al país de destino y, en muchos casos, los flujos de población generados por esta migración contribuyen al cambio en las tendencias de edificación en los casos en que los destinos tienen bajos niveles de renta. Estos flujos tienen también implicaciones futuras como la necesidad de aumentar los servicios de atención a la tercera edad o en salud lo que, hoy por hoy, implican un elevado gasto público para el sistema español. Este artículo se interesa por las implicaciones en el corto plazo, así como en indagar en el fenómeno en sí. A través de la explotación de parte de los resultados de un proyecto de investigación denominado REVIcVAL (Retirados y vivienda en la Comunidad Valenciana), el artículo muestra algunas características de este flujo migratorio así como la racionalidad a la hora de tomar la decisión de comprar una vivienda. El ejercicio empírico utiliza información primaria recogida a través de un cuestionario recopilando información de retirados ingleses y alemanes en la costa de Alicante durante los años 2005 y 2006, con una base municipal, y estima la racionalidad en la toma de decisión de compra de viviendas.

Palabras clave: migración de retirados, mercado de viviendas, Alicante.
Clasificación JEL: J11, J14, R21, R23

Late Life Second Move Housing Choices of International Retiree Migrants

by José M. Casado-Díaz

Gibler, K.M.; Casado-Díaz, J.M.; Casado-Díaz, M.A.; Rodríguez, V. y Taltavull, P. (2009) “Late Life Second Move Housing Choices of International Retiree Migrants”, International Journal of Housing Markets and Analysis, Vol. 2; nº. 2, 190-210.

REVIcVAL Project. Valencia Government GV048-530 supported the gathering of the data used in this research.

Purpose – Many international retirement migrants are amenity movers undertaking the first move in the late life course... more Purpose – Many international retirement migrants are amenity movers undertaking the first move in the late life course model of migration. The purpose of this paper is to examine second moves within the retirement destination community to test whether the model of late life course migration accurately portrays the motivations and housing choices local movers make after retiring to another country.

Design/methodology/approach – The paper combines secondary data and survey results to examine the composition of the retiree migrant population in the Alicante province of Spain. The socioeconomic characteristics and housing choices of those who have made a second move since retiring to Spain are compared with those who have not moved through a series of t-tests and chi-square tests.

Findings – The paper finds that those who have made a second move within Spain are somewhat typical of second movers in the late life course. They are likely to cite mobility or health problems as a reason for moving and appear to recognize the need for a home that provides living area on one floor. Yet, they are choosing to move within an area that does not provide them with access to informal family care givers.

Research limitations/implications – The data are restricted to retirees of two nationalities in one province of Spain. Further research is suggested in other locations and with retirees of other nationalities for comparison.

Practical implications – Because many international retirees do not plan to return to their countries of origin, they will create demand for formal in-home care services and supportive retiree housing in the near future in their retirement destination countries.

Originality/value – This paper provides understanding of a growing consumer housing segment in retirement destinations.

Natural Gas Pipelines and Residential Property Values: Evidence from Clackamas and Washington Counties

by Eric Fruits

Draft Environmental Impact Statement, 2008

Little research effort has been directed toward evaluating the extent to which distance from a pipeline affects... more Little research effort has been directed toward evaluating the extent to which distance from a pipeline affects residential property values. Indeed, no published research has been directed toward the effect of natural gas pipelines. Instead, past research has focused on petroleum and petroleum products pipelines and the effects of accidents, such as ruptures and explosions, on residential properties. It is important to distinguish natural gas pipelines from petroleum pipelines. For example, spills from petroleum pipeline can cause wide ranging and long-term environmental contamination. The environmental consequences associated with natural gas leaks tend to be less severe and relatively short term.

To evaluate the potential impacts of Oregon Pipeline’s proposed pipeline on the property values of adjacent and nearby properties, this study uses the hedonic housing price approach to estimate the impacts of a similar intrastate pipeline that went into service in September 2004.

This study performs three different statistical tests to evaluate how proximity to the pipeline affects res- idential sales prices. Each of the statistical tests indicates no relationship between proximity to the pipeline and properties’ sales prices. In other words, the pipeline has no impact on property values. Previously published research has found that pipelines have no relationship—or a slightly positive relationship—with property prices (Hansen, Benson and Hagen 2006, Simons 1999, Northwest Natural Gas Co. v. Shirazi 2007).