Charles J. Delaney

Impact Fees and the Price of New Housing: An Empirical Study

Development exactions in the form of impact fees are being used increasingly by local governments to fund the cost of providing public services necessitated by growth and development. This paper presents the results of an empirical study designed to ascertain the extent to which impact fees are capitalized into the price of new, single-family dwellings. On June 3, 1974, the city of Dunedin, located in Pinellas County, Florida, began assessing impact fees of

Portfolio Management: An Alternative Approach to Asset Allocation

1,150 against all new, single-family construction. Using data on 5,839 new home sales in Dunedin and three other cities in Pinellas County from 1971-1982, it was found that builders were able to pass forward the total cost of impact fees to new home buyers. However, the price differential due to impact fees for new dwellings in Dunedin compared to the price of new dwellings in the other three cities disappeared after approximately six years. This is explained by the nature of the fee structure in Dunedin, adjustments in factor costs, increases in the price of housing in competing cities, and unrealized expectations regarding the benefits to be provided by impact fee collections. Copyright American Real Estate and Urban Economics Association.

Development contributions in Australia: Unresolved issues

hould a financial advisor consider a family’s house and mortgage debt when deciding on the allocation of the family’s other assets? S Most advisors either ignore the house and the mortgage when deciding on the allocation of the family’s financial assets, or they consider only the equity built up in the house. We are reasonably convinced these approaches are incomplete, and we present here what we believe to be a better approach. Perhaps most important, we pose a question that affects most families with the intention of eliciting carefully thought-out responses. How, if at all, should the values of a house and mortgage influence the allocation of the family’s other assets? Consider a young couple with a

Development Exactions: Winners and Losers

100,000 house and a

High Voltage Power Lines: Do They Affect Residential Property Value?

90,000 fixed-rate mortgage. Most treatments either 1) ignore the values of both the house and the mortgage, or 2) consider only the

Pricing Implications of Development Exactions on Existing Housing Stock

10,000 equity in the house when recommending an allocation of the family’s financial assets. The first treatment ignores the house, which may represent most of the young couple’s total assets, and it ignores the mortgage, which represents a short position in long-term debt. Recognition of these facts could affect allocation of the couple’s other assets and liabilities. The second treatment looks at only the

An Empirical Analysis of Housing Price Appreciation in a Market Stratified by Size and Value of the Housing Stock

10,000 equity. This treatment is appropriate only if the value of the mortgage is a perfect hedge for the value of the house. Clearly, this is not the case. Our position is that the entire balance sheet should be considered in determining the allocation of assets. The value of the home should be treated as an asset, and the mortgage should be treated as a short position in bonds.

Case Studies in Real Estate Education: The New AACSB Accreditation Standards and a Proposed Case Study in Real Estate Management

Summary Up until the last 15 years, state and local governments in Australia tended to provide most off‐site infrastructure to new housing developments free of direct charge, while developers financed the provision of on‐site infrastructure. Recently, however, because of intense fiscal pressure, state and local governments have begun to withdraw from their traditional infrastructure role, and increasingly are seeking new, off‐budget ways of financing infrastructure provision. The levying of development contributions on estate developers has proven to be more and more popular in this regard. While not without merit, development contributions are by no means unproblematic, a point which seems not to have been fully appreciated by governments seeking hastily to resolve pressing budgetary difficulties. This paper draws attention to some of these difficulties by reviewing some of the key theoretical and empirical issues at stake.

An Analysis of the Relationship between Price and Variance for Homogeneous Housing Stock

Abstract The legal foundations and planning ramifications of development exactions have been previously explored in great detail in the literature. In addition, several authors have examined, in a theoretical context, the economic implications of development exactions in the new housing market. A related and equally important issue, which has been discussed only in a cursory fashion, is the conditions under which development exactions influence the prices and rents of structures not directly subject to an exaction. This article addresses a range of exactions, first examining the price effects on new structures, then identifying situations in which indirect price effects on other structures result.