advertise your website Login Registration
Submission Guidelines Recent Approved Articles Featured Articles
Submit Free Article
Home About Us Advertising GuideLines Do's & Don't T & C FAQ Contact us
  Home Real Estate Articles Building a Home Articles
HostJinni Promotions
Articles Category
Arts & Entertainment
Computers & Technology
Food & Drink
Health & Fitness
Home & Family
Home Based Business
Home Improvement
Just for Women
Kids & Teens
News & Society
Online Business
Online Tickets
Real Estate
Reference and Education
Self Improvement
Sports & Recreation
Travel & Tourism
  Member Area
Author Login
Free Registration
Authors From Country
  Helpful Topics
How to Write Articles
Free Early Approval Tips
Why Article Submission
  Best of Webzine
Leader Board
Most Viewed Articles
Top Rated Articles
  WebZine Status
Total Articles -25429
Registered Authors - 4565
Featured Articles - 340
Articles added this
month - 0

How Local Elections Can Dictate The Value Of Your Home


With local elections on the horizon, it is essential to understand the significant impact that our newly elected leaders will have on real estate values in our area. Most individuals consider housing, or shelter, to be a necessity item on par with essentials such as food and water. However, unlike commodity items like milk or wheat, housing supply is completely unregulated by the federal government.

The Subdivision Map Act provides the State of California with a very slight amount of power to regulate housing since California’s cities are required to report their General Plans for anticipated growth to the State for approval, but the State’s process for approval does not focus on economic factors like near-term housing supply and demand. As a result, the vast majority of housing development regulation is enacted and enforced by local city governments.

To illustrate the tremendous burden this responsibility places upon planning commissioners and city council members, it is important to understand how the fundamental economic concept of supply and demand is applied to housing. If the supply of housing rises to a level of a surplus without a correlating increase in demand, housing values will decrease. This concept may seem to be obvious now that housing prices have plummeted up and down the state, but many of California’s local leaders were amazingly oblivious to this notion during the real estate boom years several years ago.

Shortly after the turn of the century and during one of the fastest appreciating real estate markets in history, many local governments justified their seemingly endless approval of residential development projects by citing to the increase in city revenues and jobs that these developments will generate. Unfortunately we now know how quickly these benefits can be erased by not paying attention to supply and demand principles. Once buyers’ demand could not keep up with escalating home prices, unprecedented numbers of home builders began to reduce the prices of their homes in order to compete with one another. This caused housing prices to begin falling. Home values began to drop so rapidly that foreclosures became the only viable option for many borrowers as selling or re-financing became impossible since all the equity in their homes had been wiped out by this excessive competition. Soon foreclosures began to flood the market driving supply up even further. Home builders were then forced to reduce their prices further to compete with banks that were offering their foreclosed-upon homes for much lower prices. All the while the values of homes caught in the cross-fire were diminished to astonishingly low levels and the fear of continuous declines in housing prices kept buyers on the sidelines and demand at historical lows.

Now it is easy to ignore a potential lesson learned here by simply claiming that this was a national housing crisis that local government leaders had no power to avoid. In reality, it was these civic leaders alone that could have prevented such wide-spread economic devastation within their respective municipalities. Had they simply assessed local statistics addressing population growth, income levels and existing housing supplies prior to handing out rubber-stamp approvals, they might have learned that their local housing supply was quickly outpacing demand.

In addition, not all cities succumbed to the pressures of filling city coffers and decreasing short-term unemployment figures. In fact, those cities that have traditionally regulated their housing supply by more intensely scrutinizing proposed developments have mitigated their pain relatively effectively. Cities that were more selective in their approval of residential developments can be found throughout California. There are many cities across the country that restricted growth to keep foreclosures at bay and local economies intact.

It is no surprise that local candidates for office are now uniformly using smart growth and concentric development as primary focuses of their campaign platforms. It is our job as voting citizens to ensure that they maintain these pledges when our local economy once again finds its pulse. We must remember that although it is tempting to rely on the principles of free-market economics, our local leaders must not overlook the fundamental economic principle of supply and demand. Otherwise, local residents may not like the results with which they are left.

Like this article..? Rate it here:  Votes | Average: 1 out of 5  Votes | Average: 2 out of 5  Votes | Average: 3 out of 5  Votes | Average: 4 out of 5  Votes | Average: 5 out of 5     34 votes, average: 4.82 out of 5    
About Author
Articles Stats
  Published Date - October 3 2009
  Total Views - 937
  Total Votes - 34
  Average Rating - 2
  Comments - 0
  Mr. Brian S. Icenhower
Brian S. Icenhower Esq., BS, JD, CBR, CRS, ABR, GRI is an attorney, a real estate broker, an instructor in real estate law at the College of the Sequoias, a California Association of Realtors State Director, a real estate litigation expert witness, a prosecution consultant for district attorney real estate fraud units, and a frequently published author.
Particular Article
Author Article
  • Where to go for fabulous and funky 3D architectural renderings 
  • [2013-07-14 ]
    Thanks to modern software it’s easy to market a development today. Back in the day you needed scale models of buildings to get a message across but now all you require is a laptop linked to a Powerpoi Read More...
  • Two Storey Home Plans – Now No More Space Problems
  • [2013-01-29 ]
    Building a home is definitely not a child’s play and especially if you have an oddly shaped land, limited space to build and limited resources. Read More...
  • Some Facts to Know when Buying Residential Apartments in Pune
  • [2013-01-29 ]
    If you are looking for residential apartments in Pune, you might want to know the present real estate conditions of the city. This article will give you all the information regarding the same. Read along. . Read More...
  • How To Measure The Developer Based On The Display Homes Sydney?
  • [2013-01-02 ]
    When you start searching for land and house packages, you will find that most property developers have a display home to be shown to their prospective customers. Read More...
  • Basics to Know When Planning To Purchase Land Packages Sydney
  • [2013-01-02 ]
    Land developers and home builders are offering effective and sophisticated solutions to seekers of land packages Sydney. Most people today prefer to explore land packages and everything else. Read More...
  • House Packages Are Popular For a Reason
  • [2013-01-02 ]
    For some time now house packages Sydney have been popular for those looking to build their dream home. For an average person buying a house is not just a dream or their life’s biggest investment. Read More...
  • Flats in Kharadi and Residential Properties
  • [2013-01-02 ]
    Over the recent times, Kharadi has grown and met demands in providing high-end apartments in Pune. According to the survey of NASSCOM, Kharadi as a location has been a home to giant Indian IT cities. Growing from a simple village to a premium bankable investment location, duplex and luxury homes in Kharadi have become the most sought-after apartments in modern times. Read More...
  • Luxurious Apartments in Pune that go well Beyond Luxury
  • [2012-11-15 ]
    Luxury is an ever changing concept: yesterday’s comforts are today’s necessities; what were aspirational years ago is de rigueur today. It’s time to change the paradigms of luxury. It’s time to transform it into a holistic and infinitely more fulfilling experience. Read More...
  • Assotech Project On Dwarka Expressway
  • [2012-10-22 ]
    Properties with hot features are in huge demand in Gurgaon. Real estate companies launching their residential projects in Gurgaon and nearby areas like Manesar, Dharuhara, Dwarka expressway are making Read More...
  • Remarkable Need for Builder Apartments as a better choice in Bangalore
  • [2012-08-12 ]
    Earlier known as the Garden city, Bangalore now has actually got altered its identity. Even more and more individuals are coming to Bangalore from all over the globe for work applications. Read More...
  • Why Opt for Facility Management Services for Your Procurement and Storage Operations?
  • [2012-04-06 ]
    Inventory management is a crucial area where any kind of mismanagement or data error can affect the entire project lifecycle – manufacturing process and the supply chain process. Read More...
  • How a Facility Manager Helps in Designing Your Office
  • [2012-03-09 ]
    Functional and aesthetic office premises certainly create a positive impression on the employees as well as on clients. Read More...
  • How Facility Managers Help You Construct Your Facility
  • [2012-02-23 ]
    Construction of a commercial facility is a complex task. Overlooking a key building feature while constructing your facility may lead to huge operational costs after construction. Read More...
  • Few Rules to Follow While Buying Homes for Sale in Kelowna
  • [2012-02-20 ]
    Kelowna homes for sale have a particular “something” that can hardly be matched by real estate properties in other areas. Whether it is the serene location, the weather, or the community. Read More...
  • How Facility Management Experts Help You in Saving Costs by Conserving Energy
  • [2012-02-14 ]
    Energy consumption is one of the main concerns for most of the commercial or institutional building owners today. Read More...
      Submit Articles - Free Articles - Online Articles Submission  
      WebZine Articles ( is a registered trademark. All Rights Reserved. 2012