Speculation and Monopoly in Urban Development : : Analytical foundations with evidence for Toronto / / J.R. Markusen, David T. Scheffman.

• Superior document: Title is part of eBook package: De Gruyter University of Toronto Press eBook-Package Archive 1933-1999
• VerfasserIn: Markusen, J.R.,; Scheffman, David T.,
• Place / Publishing House: Toronto : : University of Toronto Press, , [2020]; ©1977
• Year of Publication: 2020
• Language: English
• Series: Heritage
• Physical Description: 1 online resource (176 p.)

The recent rapid rise in land and housing prices in Canadian cities has generated much public concern. It is widely supposed that prices have been inflated by monopolistic developers, an assumption that has never been adequately tested. This study evolves a model of the land development process which includes a new theory of land pricing giving special emphases to market structure, speculation, and taxation. It then applies the model to the first fully documented examination of the Toronto land market, presenting specific original data on ownership and land assembly. The history of the conversion of farmland to residential use in four recent Toronto subdivisions permits a close look at the activities and profits of speculative middlemen and at the length of time developers buy land prior to subdividing. The results indicate that Toronto real estate is not controlled by a few large developers, that ownership concentration is too low to imply market power even if all companies with overlapping corporate control are treated as a single firm. The authors suggest that rising prices have been caused by unforeseen increase in demand, shortages of municipally provided trunk service capacity, especially sewers, and frequent municipal reluctance to grant subdivision approvals. The book concludes with a general consideration of the role of government in land development and a number of specific policy recommendations concerning the subdivision approval process, the Ontario Land Speculation Tax, and public land banking. This study will be of great interest to urban geographers and economists, to urban planners and policy-makers, and to representatives of development corporations and urban reform groups.

Table of Contents

Frontmatter -- Contents -- Acknowledgments -- 1. A guide to the study -- 2. Ownership concentration and market power in urban land markets -- 3. The timing of land development -- 4. The role of uncertainty and speculation in the land market -- 5. An empirical investigation of land ownership in the Toronto region -- 6. Land assembly in the Toronto region -- 7. Implications for public policy -- APPENDIX A. Land and housing price data -- APPENDIX B. Ownership concentration and market power: the mathematical analysis -- APPENDIX C. Properties of the demand functions -- APPENDIX D. Derivation of the effects of the taxes -- APPENDIX E. Monopoly equilibrium: an example -- APPENDIX F. A model of the consumer-speculator -- Bibliography