Editor's comments

Article Abstract:

The Bush administration's efforts to ease the US economy out of recession have not taken effect due to banks' hesitancy to offer financing, caused in turn by overly strict regulation. For the commercial real estate industry, this means that conditions are not going to improve until 1996. The industry's recovery depends on available financing for improving existing properties. Since economic recovery rests on cooperation among all sectors of society, government should act as moderator between community and industry to protect public interest. Putting the blame on developers for the country's ills should be avoided.

Real estate agents and managers, Planning, Economic development

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Editor's comments

Article Abstract:

The status of the real estate industry is difficult to assess because of conflicting economic conditions. Real estate developers are unable to finance their projects because banks are not willing to lend. House prices, mortgage rates and rents are declining but commercial property owners are facing increasing vacancy rates. Despite unfavorable industry developments, prices of real estate stocks are rising. The government is partly to blame for the condition of the industry because of the paralysis in its decision making and its tendency to bail out bankrupt firms.

Industry Overview

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Editor's comments

Article Abstract:

Tax reform in the United States is needed to curb the budget deficit. Some measures could benefit the real estate sector, such as changes in the taxation of foreign investors, which could promote more investment from abroad if foreign investor gains are taxed at a suitable rate. Low interest rates are also benefiting real estate. Meanwhile, banks still need control, and if this is loosened, a financial crisis could occur again.

EXECUTIVE, LEGISLATIVE, AND GENERAL, Clinton, Bill, Economic policy, Tax reform

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