©2011 Cengage Learning. Chapter 19 ©2011 Cengage Learning ANTICIPATING CHANGE.

Chapter 19


ANTICIPATING CHANGE

Today’s Real Estate IssuesRecovery from the Financial Collapse of 2007The Recovery of Commercial Real EstateFinancial System Recovery


Other Real Estate IssuesLand use controls change as society’s

perception of ideal land use evolves.The most important regulations appear to be

in environmental & pollution issues. Endangered species, drainage, water

conservation & government control of land use.


The Consequences of the Financial Collapse of 2007


Trust in U.S. Financial InstrumentsIncrease in Regulation The Future of Real Estate FinanceDeleveragingManaging the Economy and Asset BubblesThe Past and Future Role of PoliticiansInterest and Inflation Rates


Problems Concerning Housing SpecialistsEnvironmentally regulated shortages of land

and materials.The strong cyclical variations in the cost

and supply of credit.Difficulty of maintaining older units. How to provide housing for elderly and low-

income people.


Summary on the supply side of housing

Restrict or stop issuing building permits related to availability of water, sewage treatment, & environmental restrictions.

Public resistance to change.Availability and cost of materials.


TrendsUps and downs of interest rate have a

major impact on the real estate markets.Swings impair the efficiency of real

estate-related businesses, increasing the cost to consumers.


HousingThere continues to be problems in providing

specialized housing for elderly, large, low income families.

The U.S. population is aging in terms of the total percentage.


The Uncertain FutureConsumerism is growingPeople now are willing to express objections

to the goods and services provided.Disclosure laws and responsibilities are

increasing.There is an increasing use of broker errors

and omission insurance and home warranty insurance.


Real Estate ProfessionalsIncreased knowledge (education)

Increased specialization

Increases in size of the typical real estate brokerage company


National ChangesDemographic Issues Population Composition PovertyHomeownershipElderly


Lifestyle ChangesSecond homesRecreational resortsBed and Breakfast innsExpensive restaurantsAcreage home sitesLuxury homes


IssuesLabor Force Political/LegalLand-Use Controls ConsumerismPolitical Conflict


Societal & Economic Changes Impact Land Use & Values

The process of electronic technology is reshaping & restructuring patterns of social interdependence & life.

Population growth has already been recognized as one of the world’s most pressing current and future problems.

For religious and social reasons, population control is quite controversial.

The United States is the world’s energy-driven society substituting other energy sources for human labor.


The Uncertain Future

TelemobilityPopulation GrowthPopulation Control Pollution and Global Warming


What is in the future?


©2011 Cengage Learning. Chapter 19 ©2011 Cengage Learning ANTICIPATING CHANGE.

Documents

Transcript of ©2011 Cengage Learning. Chapter 19 ©2011 Cengage Learning ANTICIPATING CHANGE.