Geography 2460F/G Chapter Notes - Chapter 8: Product Differentiation, Political Machine, Federal Housing Administration
3 Apr 2015
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Investment in the built environment is critical at times of overaccumulation but. 2. current rates of profit from investment in property. Overall relationship between the supply of property, prevailing interest rates, and. Continued housing shortage will push rents higher; vacant land; higher profits from construction; renewed investment. is plentiful, rents will be depressed and there will be a tendency for disinvestment. Supply of housing reduces; rents rise; upturn in investment: with low interest rates relative to profits from house building and a shortage of housing space, land acquisition and construction will boom until the backlog in demand is met. Construction overshoots; high vacancy; lower profits; lower rents. If interest rates are high relative to profits from house building but housing space. 2: when interest rates are low relative to profits from house building, there will be a speculative boom even if there is plenty of housing space. Intrametropolitan scale; involved the existence of localized property submarkets.
