What Is Short Term Corporate Housing?

The housing price refers to the price of the house together with the land it occupies, that is, the house price: land price + building price.

Housing price

The housing price refers to the price of the house together with the land it occupies, that is, the house price: land price + building price.

There are three forms of housing prices: market prices,

Housing price decision

There are unique rules in determining housing prices. Housing price is a kind of commodity price when there is land rent. It is a typical situation where the usefulness of goods produced by different grades of land is different: for housing, the goods (housing) produced in superior places (good locations) are highly useful. Goods (housing) produced in inferior places (poor areas) are of low usefulness. As a result, housing prices are constrained by the price laws of the rent theory when there is a difference in the usefulness of commodities produced by different levels of land.

Housing prices are mainly affected by three factors: the usefulness of housing itself, the usefulness of urban fringe housing, and the cost of producing urban fringe housing.

The price of a certain house is directly proportional to the usefulness of that house, directly proportional to the production cost of urban fringe housing, and inversely proportional to the usefulness of urban fringe housing. We use the formula to express it: ^[1]

There are many factors that affect the changes in housing prices, including economic factors, social factors, political factors, and scientific and technological factors. The main key factors affecting housing prices are the speed of urban development, income levels, government policies, and taxes.

Housing prices are rising in developing cities

For a developing city, the price of any completed house in the city will continue to increase as the city continues to expand.

The reasons for the increase in housing prices are twofold: on the one hand, the rise in the production cost C0 of new housing, and on the other hand, the relative improvement in the quality (usefulness) of housing. The increase in housing production costs is mainly due to the increase in the price of land used for new housing, rising labor costs, and rising raw material costs, while the relative improvement in housing quality (usefulness) is due to the expansion of urban scale and increasingly remote locations Will be used to build a house. The usefulness U of any set of houses in the city is more and more advantageous than the usefulness U0 of the newly built house, that is, the ratio of U to U0 is increasing. Therefore, according to the housing price formula P = U / U0 * C0, for a developing city, the housing price P will become higher and higher as the city develops.

The faster the city develops, the higher the house price, the slower the city development, and the lower the house price.

The faster the city develops, the higher the price of land around the city will lead to higher housing prices. On the contrary, the slower the development of the city, the lower the land price around the city, which will lead to lower housing prices.

Once urban development stops, the lowest price around the city will be the lowest, and urban housing prices will also be at a lower level. Once urban development reverses (a sharp decline in the urban population), housing prices will plummet and become worthless.

Higher interest rates, lower house prices, lower interest rates, higher house prices

When the interest rate of funds increases, the housing price will decrease. On the contrary, when the interest rate of funds decreases, the housing price will increase.

Higher income, higher house prices, lower income, lower house prices

Resident income will also affect house prices. As the income of residents rises, the price of housing will also rise, and if the income of residents decreases, the price of housing will decrease. Some foreign studies have shown that the rate of increase in house prices is 1.5 times the rate of increase in residents 'income, with residents' income increasing by 1%, and house prices will rise by 1.5%.

The more complicated the government approval, the higher the house price, the simpler the government approval, and the lower the house price.