Real Estate Principles, 11th Edition By Charles F. Floyd and Marcus T. Allen

Chapter 11 Residential Land Uses

Types of Residential Development Single-family detached houses Single-family attached houses Row houses Townhouses Plexes Multifamily residences Condominium or cooperative forms of ownership Condominium ownership of a unit Cooperative ownership of stock in corporation that owns the property

Types of Residential Development, cont. Manufactured homes Second homes Market is different from primary-home market Timeshare form of ownership is sometimes used

Market and Feasibility Analysis Delineation of the market area Determined by employment opportunities and commuting ranges Analysis of recent economic trends in the local market area Determination of future demand Analysis of future supply Potential demand What lies beyond recent trends?

Financial Feasibility Analysis The importance of market analysis Three most important factors in real estate development are “the market, the market, and the market” See: Case Study “Milford Hills Saga” Table 11.1 Milford Hills Project—Projected Development Expenses Table 11.2 Milford Hills Development—Pro Forma Cash Flow Statement