Monday, June 22, 2009

the role of government in real estate markets

government effects real estate markets in a host of ways. local government has perhaps the largest influence on real estate. It effects the supply and cost of real estate through zoning codes and other land use regulations,fees on new land development, and building codes that restrict methods of construction . further, local government affects rental rates in user markets through property taxes. finally, it profoundly effects the supply and quality of real estate estate by its provision of roads, bridge , mass transit, utilities, flood control, schools, social services, and other infrastructure of the community. (the influence of local government through land use controls, property tax policy.)
state government has perhaps the least effect on real estate,although it still is important. through licensing of professionals and agents, states constrain entry into real estate related occupations. through statewide building codes, they can affect building design cost. through disclosure laws and fair housing laws, states affect the operating of housing markets.

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