How Local Economic Development Affects Real Estate Demand And Price

How Local Economic Development Affects Real Estate Demand and Price
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Abstract
The local economic development of a given region plays a significant role in determining the demand and supply of goods and services. Rapid economic development, for instance, may lead to high purchasing powers among consumers for the different commodities reflecting an increase in demand for the same. Increased demand and people’s purchasing abilities may further create an inadequate supply of the same product irrespective of the constant rate of production maintained by both the manufacturers and suppliers. The real estate industry forms no exemption from the outlined trend as local economic development leads to increased demand for housing and office space for consumers. Summerlin development in Los Angeles, Nevada is an excellent depiction of the effect of economic development of a region and its subsequent influence on the demand price for real estate.
How Local Economic Development Affects Real Estate Demand and Price
Introduction
The Summerlin development project in Los Angeles, Nevada attracts major attention from real estate developers and investors from the local, state, and national levels. The rising cost of housing in the region contradicts the increasing housing demand in the region as well as an insufficient supply of the same. The supply and demand chain for the vital human need favors the investors and developers as they cash in on the increased or rising cost of housing in Summerlin. The cost of housing at the Los Angeles’ suburbs is 68% higher than the national average and thus ranking it as one of the places with the highest rent prices for both residential and office use CITATION Are191 \l 1033 (Areavibes, Summerlin North, Las Vegas, NV Real Estate, 2019). The wide margin between Summerlin’s cost of housing and the national average is indicative of the equally wide disparities between the economic developments of the local region and that of the nation as a whole. The difference is also a testament to the presence of underlying factor, features, or characteristics of the local region, which serve to invite an influx of investors, developers, and tenants to the region. One of the key factors affecting or influencing the rapid real estate development in Summerlin is the economic development of the region. Provided herein is a manifestation of the region’s economic development and its correlation with the rapid development of its real estate sector. A comprehensive analysis of the outstanding features or characteristics of the local region’s economy and their subsequent effect on the real estate provides an excellent platform for understanding the correlation between the two factors.
Summerlin Development Project
The real estate development standards at a pristine location at the feet of the Western side of the valley of Las Vegas, and is also adjacent to the attractive scenery of the Red Rock Canyon National Conservatory. The real estate development project is an evolution of the emerging, and current trend in the sector commonly referred to as planned communities. The Summerlin development displays effective real estate planning characterized by a wide range of amenit...