Module 11

Residential Land Uses

Land dedicated primarily to housing people and supporting residential living, as opposed to commercial, industrial, or agricultural activities

Single-Family Detached Houses

Standalone residential buildings designed to house a single household, completely separated from neighboring structures by open space on all sides

Single-Family Attached Houses

Row House

A specific style of multi-story house built side-by-side with other similar homes in a continuous, identical or uniform line along a street

Townhouse

A multi-story, single-family home that shares one or two walls with adjacent properties

Plexes

A single multi-family residential building divided into two, three, or four separate, independent living units under a single roof

Condominium Ownership

You hold real property ownership of an individual interior unit, plus a shared interest in the common areas of the building or community

Cooperative Ownership

You do not own real estate directly. Instead, you hold personal property/shares in a corporation that owns the entire building and land

Manufactured Homes

A single-family dwelling built entirely in a factory off-site, transported to a property location on a permanent steel chassis, and installed on a site

Second Homes

A real estate classification referring to a residential property that an owner occupies for personal enjoyment for a portion of the year, in addition to their primary residence

Which type of property allows for absolute ownership of the interior space but has a tenant in common interest in the common elements?

Condominium

What distinguishes a second home from a primary residence?

Attraction to specific locations

Delineation of The Market Area

Is the process of defining the specific geographic boundaries and economic region where a property directly competes for buyers or tenants. It identifies the primary area from which demand for that specific property type originates

Community Range

The maximum distance or travel time residents are willing to travel to reach a community-level service, retail center, or public facility

Local Economic Trends

The prevailing economic conditions, business activities, and financial shifts within a specific geographic market area that directly influence real estate demand, supply, and property values

Determination of Future Demand

Predicting how many people will want to buy or rent a specific type of property in the future

Potential Demand Factors

The key drivers, like new jobs, higher wages, or population growth that bring new buyers or renters into a market

Census Data

Official government statistics about a population, including household size, age, and income levels

Analysis of Future Supply

Estimating how much new real estate is currently being built or planned to enter the market

Building Permit Analysis

Looking at municipal construction permits to see how many new homes or buildings will actually be built soon

Physical of Ecological Constraints

Natural or environmental limits, like flood zones, steep hills, or wetlands that restrict where you can build

Capital Market Factors

Financial conditions, like interest rates and loan availability that affect how easy or expensive it is to borrow money for real estate

What is a common theme in real estate analytics?

Supply and demand

What does the feasibility analysis for residential land use involve?

Evaluating supply and demand dynamic

Financial Feasibility

A study or test that determines whether a proposed real estate project will be profitable and generate enough income to cover all costs and risks

Absorption Rate

The rate at which available homes or commercial properties are sold or leased in a specific market over a given period of time

Market Analysis

The process of evaluating current market conditions, economic trends, and recent sales to determine the value of a property or the viability of an investment

Stress Test

An analysis designed to determine how a property, loan, or investment portfolio would perform under extreme, negative economic scenarios

What is the purpose of calculating the absorption rate in real estate development?

Analyzing market trends and demand

Subdivision development leads to large positive cash flows at the beginning of the project.

False

A patio house is very similar to a detached house except that there is no side yard on at least one side.

True

The first step in market analysis of residential property is delineation of the market area

True

In order to determine project feasibility, developers need to know the local market

True

In addition to analyzing recent trends within a market area, the developer should determine what underlies the trends

True

Mobile-home financing has become more comparable to conventional home financing in recent years

True

A low percentage of unsold housing units generally indicates a good market; whereas a low number of unsold houses always indicates a good housing market

False

Second-home markets are very similar to primary home markets

False

A patio house, or zero-lot-line house is similar to a detached house

True

The suburban version of the row house is called a townhouse

True