Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Elroy Jetson who wrote (62770)	4/25/2005 6:31:42 PM
From: Moominoid	Read Replies (2) of 74559

Development Fees and zoning requirements do not increase the sales price of a home. Zoning can preclude you from buying a small condo in a single family subdivision, but it doesn't make the home or the condo more expensive. As an individual developer that might appear to be the case. But the fees might result in some developers deciding that it is not profitable to build. This reduces the supply and pushes us up the demand curve where buyers are willing to pay more. This is the standard perfect competition model. One would expect bigger developers to do some pass-through some of the fee to buyers. But you say no, OK that is an empirical observation. The picture at the form level is not the same as at the market level.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next