• Housing abandonment has been a major problem for New York City costing the city over one billion dollars in redevelopment expenditures. We model abandonment as the final stage of the disinvestment expenditures. We construct a data warehouse of financial, physical, and valuation data, including tax liens, mortgage and building violations from nine New York City agencies, for approximately one million properties. Using these property specific data and foreclosure experience, a property risk indicator is constructed to predict in advance which properties will be abandoned. We show that it is possible to identify those properties for which disinvestment will precede to abandonment and foreclosure with a high degree of accuracy.
• The decision to abandon a building as analogous to the exercise of a put function is modeled. When the sum of all mortgage and municipal liens against a property exceeds its market value and when faced with the decision of either paying delinquent taxes or having the City divest it of the building, an owner will choose the latter option. This option theory of abandonment is tested using the property-specific data set of residential buildings in New York City for the period of 1990 to 1996. Whether a property’s lien-to-value ratio exceeds one is a highly significant variable, both statistically and economically, with respect to abandonment providing strong support for the option theory of abandonment.
1010 Affordable Housing Amazon Amenitization Architecture Artificial Intelligence Asia Australia automation Autonomous Vehicles bonds Borrowing Constraints Brexit California Canada Capital Business China Co-Working Environment coastal markets cold storage Colombia Commercial Brokerage Commercial Real Estate commissions Congestion consumer bias covid-19 CRE credit card market Credit Default Swaps Credit Insurance Credit Risk Transfers Culture Data Analytics data centers Data Collection Technology Debt Market Demand Demographics Density Development Discrete Choice disruption Diversity drones e-Commerce Economic Corridors economic policy economics education election studies Equity Funds Equity Market Ethnic Factors Europe Fannie Mae financial asset management Foreclosures Foreign Policy France Freddie Mac general equilibrium Global global economy Global Financial Crisis Globalization great depression Great Recession healthy buildings Hedonic hospitality Housing & Residential housing boom Housing Disease housing prices Housing Supply Identity Income Inequality India inflation Inter-generational mobility interest rates Investing jobs labor market Lagging Regions land use regulation Language life sciences Macroeconomics malls Market Pricing megacities Microeconomics Migration Minimum Payments Mixed-Use Mobility moral hazard mortgage insurance mortgage market Mortgage Rates Mortgages Multi-family Nation Building Non-Traditional Mortgages Office Market office sector pension funds Placed Based Policies Political Risk Price Discovery Private Equity Business public health public policy Public Schools real estate brokerage Real Estate Investment Real Estate Investment Trusts Recession Rental Retail Retirement reverse mortgages Risk Adjustment risk management risk-shifting robotics single family housing Slums Sorting South America Spatial Regions spillover effect stimulus package Sub-Prime Mortgages Supply Chains Sustainability Technology telecommunications trade transportation unemployment United States Urban Urbanization Warehouse welfare work from home