1. HOUSING & COMMUNITY DEVELOPMENT PLANNING

2. TOPICS ALLOCATION OF LAND HOUSING TYPES URBAN SEGREGATION
NEIGHBORHOOD CHANGE
HOUSING & REAL ESTATE
LOCATION, LOCATION AND LOCATION

3. Source: City of El Paso Planning Department

4. Source: City of El Paso Planning Department

5. HOUSING AS A BUNDLE

6. EDGE CITY

7. CELEBRATION FLORIDA

8. SEASIDE FLORIDA

9. GATED COMMUNITIES

10. Long Lake Palms in Boca Raton, a gated community with a combination of very luxurious courtyard and estate homes.

11. HOUSING FOR THE POOR COLONIAS

12. COLONIAS

13. PUBLIC HOUSING

14. Cabrini-Green

15. URBAN SEGREGATION
Segregation is the result of market forces (Edge cities are a function of class and not race)
Segregation is the result of consumer taste & preferences (voluntary segregation)
Segregation is the result of institutional factors (lenders, realtors, laws, etc.) also known as “red lining”

16. MODELS OF NEIGHBORHOOD CHANGE
ECOLOGICAL
Invasion/Succession (changes in the make-up of the community pushes people out)
Filtering (Every neighborhood goes through a process of decline)
Bid Rent (People trade-off land and amenities for accessibility)

17. MODELS OF NEIGHBORHOOD CHANGE
SUBCULTURAL
Non economic factors are the key to stable neighborhoods
Social Networks
Families
Symbolism
Reputation

18. MODELS OF NEIGHBORHOOD CHANGE
POLITICAL ECONOMY
The city is seen as a growth machine whose main function is to foster capital accumulation
Emphasizes the “exchange value” in housing
Institutions (banks, realtors, etc.) play a key role as forces of change

19. HUD’S MODEL OF NEIGHBORHOOD CHANGE
STABLE
values and incomes
In balance
Declining: falling values
Improving: rising values 1
Healthy 2
Incipient
decline 3
Clearly
declining 4
Accelerating
decline 5
Abandoned

20. TEMPKIN & ROHE MODEL OF NEIGHBORHOOD CHANGE

21. ALONSO’S MODEL OF URBAN LAND MARKETS
Paradox: the poor live close to the center and the rich in the suburbs.
The above paradox can be explained by the trade-off the household made between commuting (distance) and land.
Distance is a proxy to represent accessibility (to work) costs, then poor people tend to locate close to the center of the city to reduce accessibility costs.

22. HOUSING & REAL ESTATE
Real estate as space (without a building) and as an asset (with a building)
The value of housing is determined by endogenous factors and exogenous factors. Planning is an exogenous factor.
Housing values are affected by micro forces (location specific) as well as macro forces (those that affect the profitability or use)
Why are homes close to the mountain worth more than those away from the mountain in El Paso?

23. VALUING LOCATION( Mountain View) Hedonic Model
HV = α + β1X1 - β2X2 + β3 X3 - β4 X4 X1 X3 X4 α X2
Vector of physical attributes
Sq feet const
Bedrooms
Bathrooms
Year built
Vector of
Neighborhood
Attributes
TASK scores
Location
Distance from
The mountain
Proxy for value of a mountain
view
Value
Undeveloped
land
Vector of
Macro
Variables
Unemployment
Interest rates

24. EP REAL ESTATE Dependent Mth Rsq D.f. F Sigf b0 b1
VALUE LIN

25. EP REAL ESTATE MARKET Dependent Rsq d.f. F Sigf b0 b1
VALUE

26. OLS MODEL EP

27. HOMEWORK
You will write a memo to Joe Wardy about the situation of housing affordability in El Paso.
To accomplish the task you will calculate two hosing affordability indices simple and composite.