The Stock of Private Real Estate Capital in U.S. Metropolitan Areas

In this paper, we describe the construction of estimates of private real estate capital for each of 242 MSAs, annually, for 1982 through 1994. We compute three such series: (1) total private real estate capital (residential and nonresidential); (2) private single-family residential capital; and (3) private income property capital (multifamily housing plus nonresidential real estate , or (1) less (2)). We then model the determinants of each series, and use the results to predict the value of the capital stock for a larger set of 295 MSAs.

Cost and benefits of rent control in Kumasi, Ghana

Over the past forty years, rent control has been a feature of housing in Ghana. This study focusses on the housing market in Kumasi, the second largest city in Ghana. The authors examine the characteristics of the rent control regime in force there, and assess the costs and benefits of rent control, on landlords and on tenants, and its effect on the housing stock. Rent control has been successful in ensuring that housing is very inexpensive for most households, in both absolute terms and in the proportion of income devoted to rent. Thesecontrols have deprived landlords of economic returns on their property, causing them to withdraw stock from renting to use for their own family members and to reduce maintenance. However, rent control is not the only constraint on the housing market, in Kumasi or in Ghana. The paper also describes other supply side and regulatory constraints; such as those affecting land, finance, and choice of building design and materials. A number of options for relaxation/decontrol are studied with the aid of a simple present value model. Along with decontrol of new construction it is recommended that floating up and out of controls over a five year period should be considered, along with policy changes to ensure ready supplies of land, finance, and building materials. Such policies are essential, given that private housing investment provides the great majority of rooms in Ghanaian urban areas.Non Bank Financial Institutions,Banks&Banking Reform,Housing Finance,Housing&Human Habitats,Economic Theory&Research

Forced Sale Risk: Class, Race, and the Double Discount

What impact does a forced sale have upon a property owner\u27s wealth? And do certain characteristics of a property owner such as whether they are rich or poor or whether they are black or white, tend to affect the price yielded at a forced sale? This Article addresses arguments made by some courts and legal scholars who have claimed that certain types of forced sales result in wealth maximizing, economic efficiencies. The Article addresses such economic arguments by returning to first principles and reviewing the distinction between sales conducted under fair market value conditions and sales conducted under forced sale conditions. This analysis makes it clear that forced sales of real or personal property are conducted under conditions that are rarely likely to yield market value prices. In addition, the Article addresses the fact that judges and legal scholars have utilized a flawed economic analysis of forced sales in cases that often involve property that is owned by low- to middle-class property owners in part because those who are wealthier own their property under more stable ownership structures or utilize private ordering to avoid the chance that a court might order a forced sale under the default rules of certain common ownership structures. The Article also raises the possibility for the first time that the race or ethnicity of a property owner may affect the sales price for property sold at a forced sale, resulting in a double discount, i.e. a discount from market value for the forced sale and a further discount attributable to the race of the property owner. If minorities are more susceptible to forced sales of their property than white property owners or if there does exist a phenomenon in which minorities suffer a double discount upon the sale of their property at a forced sale, then forced sales of minority-owned property could be contributing to persistent and yawning racial wealth gaps

Visual Estimation of Building Condition with Patch-level ConvNets

The condition of a building is an important factor for real estate valuation. Currently, the estimation of condition is determined by real estate appraisers which makes it subjective to a certain degree. We propose a novel vision-based approach for the assessment of the building condition from exterior views of the building. To this end, we develop a multi-scale patch-based pattern extraction approach and combine it with convolutional neural networks to estimate building condition from visual clues. Our evaluation shows that visually estimated building condition can serve as a proxy for condition estimates by appraisers.Comment: To appear in: Workshop on Multimedia for Real Estate Tech, ICMR 2018, Yokohama, Japa