What is the impact of real estate prices on corporate investment? In the presence of financing frictions, firms use pledgeable assets as collateral to finance new projects. Through this collateral ...channel, shocks to the value of real estate can have a large impact on aggregate investment. To compute the sensitivity of investment to collateral value, we use local variations in real estate prices as shocks to the collateral value of firms that own real estate. Over the 1993-2007 period, the representative US corporation invests $0.06 out of each $1 of collateral.
This paper examines the impact of real estate prices on firm capital structure decisions. For a typical U.S. listed company, a one-standard-deviation increase in predicted value of firm pledgeable ...collateral translates into a 3 percentage points increase in firm leverage ratio. The identification strategy employs a triple interaction of MSA-level land supply elasticity, real estate prices, and a measure of a firm's real estate holdings as an exogenous source of variation in firm collateral values. Firms significantly change their debt structure in response to collateral value appreciation. The results indicate the importance of collateral values in mitigating potential informational imperfections.
Purpose: During the ongoing COVID-19 pandemic, many branches of the world's economies were negatively affected by the pandemic. The purpose of this study is to see if the coronavirus had a negative ...impact on the price dynamics of undeveloped land property using Polish suburban areas as an example.
Method: 945 transactions from 3 localities in the West Pomeranian Voivodeship over the period 2015 - 2021 were used for the study. The data was divided into quarters and the median was calculated, then a linear model was estimated. At the end, in order to check whether there is seasonality in the real estate market, the non-parametric Kendall's consistency test was used.
Results: The results indicate that the SARS-CoV-2 virus did not have a negative impact on the price dynamics of undeveloped real estate for single-family housing.
The work included an analysis of the primary real estate market in Krakow in 2017‑2020. The above analysis was carried out on the basis of transactions obtained from the official register at the ...city hall. The results of the research made it possible to observe the changes taking place in the market: the prices grew moderately, and the number of transactions was between 8,000 and 11,000 each year. In 2020, due to the COVID-19 pandemic, the number of transactions conducted dropped sharply. Despite the reduced interest of potential buyers, prices per square meter of residential space increased significantly during the period under review. Thus, the pandemic only affected the number of transactions and not the average price per unit of space.
This article presents an evaluation study of residential properties carried out together with real estate agents in the city of Volta Redonda, Brazil. The study aimed to define a reference value for ...the rents of these properties using the TODIM method of Multicriteria Decision Aiding. By applying this method to the ordering of properties with different characteristics, a ranking of all the properties was obtained and, as a result of this, diverse ranges of rental values for the properties under analysis. The study was complemented by an analysis of the sensitivity of the numerical results obtained.
•COVID-19 reduces the implicit price of metro accessibility.•The price elasticity of distance to the metro is −0.024 before COVID-19 but turns to −0.018 during the pandemic.•COVID-19 does not harm ...property prices in Chengdu.•This study points out an innovative and interesting research direction.
The metro (or underground railways) has become a backbone in the transit systems of many cities. It has numerous externalities, such as ameliorating traffic congestion and enhancing nearby property prices. Previous studies extensively focused on the relationship between metro accessibility and property prices and obtained various interesting findings and enriched practical implications. However, this relationship in the era of the coronavirus disease 2019 (COVID-19) and other epidemic shocks has not been investigated. Based on a unique property transaction dataset (including tens of thousands of transactions stretching from 2018 to 2020) in Chengdu, China, this study develops a battery of hedonic pricing models and difference-in-differences models to decipher the time-varying relationship between metro accessibility and residential property prices. The results show that the implicit price of metro accessibility modestly decreases in COVID-19, which can be explained by the declining role of the metro. In other words, the price gap between proximate and distant properties is narrowed, and the property price gradient is flattened. Specifically, the price elasticity of distance to the metro is − 0.024 before COVID-19, but it turns to − 0.018 during the pandemic. The relative price of properties within 500 m from metro stations to those farther away (500 m − 3 km) decreases by 15.4% during the pandemic. Additionally, COVID-19 does not jeopardize property prices in Chengdu. Furthermore, the decrease in metro access premiums may be short-lived and only persisted for several months or years. The plausibility and robustness of the core findings have been confirmed through alternative treatment groups, alternative model specifications, and placebo tests.
How many households are evicted from their homes each year in Brussels? What is known about the profile of evicted tenants and landlords who have called for an eviction? Are some parts of the city ...more affected than others? Although they constitute an extreme case of deprivation of the right to housing, evictions from housing in Brussels are still very poorly documented. This article aims to address this lack of knowledge by providing a comprehensive snapshot of judicial evictions over one year (2018) for the entire Brussels Region. The results highlight the importance of questioning the lack of institutional data on housing evictions in a city where housing production and allocation is largely dominated by market mechanisms.
Hoeveel huishoudens worden ieder jaar uit hun woning gezet in Brussel? Wat weten we over het profiel van de huurders die uit hun woning worden gezet, en over dat van de verhuurders die een ...uithuiszetting hebben gevorderd? Komen uithuiszettingen in sommige delen van de stad meer voor dan in andere? Hoewel een uithuiszetting een extreem geval van ontneming van het recht op huisvesting is, zijn de uithuiszettingen in Brussel nog altijd amper gedocumenteerd. Dit artikel wil dat gebrek aan kennis verhelpen door een volledig overzicht van de gerechtelijke uithuiszettingen in één jaar (2018) voor het hele Brusselse Gewest te verstrekken. De resultaten benadrukken hoe belangrijk het is om de gebrekkige institutionele productie van gegevens over uithuiszettingen aan de orde te stellen, in een stad waar de productie en de toewijzing van woningen in ruime mate door marktmechanismen worden bepaald.
How many households are evicted from their homes each year in Brussels? What is known about the profile of evicted tenants and landlords who have called for an eviction? Are some parts of the city ...more affected than others? Although they constitute an extreme case of deprivation of the right to housing, evictions from housing in Brussels are still very poorly documented. This article aims to address this lack of knowledge by providing a comprehensive snapshot of judicial evictions over one year (2018) for the entire Brussels Region. The results highlight the importance of questioning the lack of institutional data on housing evictions in a city where housing production and allocation is largely dominated by market mechanisms.
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