Monday, June 22, 2009

the role of government in real estate markets(2)

In addition, states typically set the basic framework of requirements for local government land use control, and even intervene in the realm of land use controls for special purposes such as protection of environmentally sensitive lands.states affect the provision of public services important to a community, including schools, transportation systems, social services, law enforcement, and others.
the national government influences real estate in many ways. income tax policy can greatly affect the value of real estate, and therefore the incentive to invest in it. Housing subsidy programs can have enormous effects on the level and type of housing construction. federal flood insurance programs can influence development in coastal and wetlands regions. federal financial reporting and disclosure requirements, and governments-related financial agencies such as the federal reserve system,the federal deposit insurance corporation(FDIC),and Fannie Mae and Freddie Mac all have profound effects on the the operation of the real estate capital markets.Further, consumer protection laws affect few a sects of household activity more than they impact housing purchases and financing. In addition, laws protecting the environment and endangered species have significantly affected the use of real estate..national fair housing laws and other civil rights legislation are very important influences on housing markets.

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