The Problem Of Real Estate Essay
Its most common use is to identify the tangible assets of land and buildings. Second, it is used to demote the “bundle” of rights that are associated with the ownership and use of the physical assets. Finally, when referring to the industry or business actives related to the acquisition, operation, and disposition of the physical assets.
The United States represents about 6% of the earth’s land surface, or approx. 2.3 billion acres. Who owns this land? What is the distribution of this land among the various uses (developed land, fed. land, forestland)?
As of 2003, 71% of this acreage is in nonfederal, rural land uses.
Developed Land - 6%
Water areas and federal land - 23%
Cropland - 19%
CRP land - 2%
Pastureland - 6%
Rangeland - 21%
Forestland - 21%
Other rural land - 3%
Describe the value of the U.S real estate by comparing it to the values of other asset classes (stocks, bonds, etc.)
Real estate is valued at approximately $25.6 trillion in the total market. Whereas, corporate equities are worth $19.6 trillion; Corporate and foreign bonds are worth only $11.3 trillion.
How much of the wealth of a typical U.S household is tied up in real estate? How does this compare to the role that assets and investments play in the portfolios in U.S households?
As of December 2008, the typical U.S household had 27% of their wealth tied up in their household. This compares with…