Property and Thomas Piketty: Casting the Lens of Thomas Piketty’s Capital in the Twenty-first Century on Inequality in the Urban Built Environment

Authors

  • Patrice Derrington, Dr. Graduate School of Architecture, Planning and Preservation, Columbia University in the City of New York, USA https://orcid.org/0000-0002-9029-5388

DOI:

https://doi.org/10.25034/ijcua.2018.4674

Keywords:

Urban Built Environment, Housing, Property, Low-cost work, Thomas Piketty, Economic analysis

Abstract

Currently, there exists a disturbing urban problem exemplified by the excessive luxury apartments and glamorous office towers being built in cities around the world in the face of the increasing unaffordability of housing and low-cost work, trade or craft space. Seeking to address this complex problem, this paper proposes a theoretical framework that uniquely addresses both the capitalist economic structure that drives the development process and the Marxist-based urban theory by which the socio-economic outcomes are currently evaluated. This framework takes as its meta-theory, the approach of Thomas Piketty in his recent treatise, “Capital in the Twenty-First Century” since he deftly employs the Marxist dialectic of labor/capital while investigating the persistent inequality in the history of capitalism by interrogating that system itself. This bifurcated framework of economic analysis affords a new format for examining real estate returns, how they are represented in the market place, who benefits from them, and how resultant inequalities might be avoided in urban development.

Downloads

Download data is not yet available.

Article Metrics

References

Ball, M. (1986) .The built environment and the urban question. Environment and Planning D: Society and Space, Vol. 4, pp.447-464. https://doi.org/10.1068/d040447

Bateman, M. (1985), Office Development: A Geographical Perspective, St Martin’s Press, New York: USA. https://trove.nla.gov.au/work/18596428?q&versionId=21830977

Beauregard, R.A. (1994).Capital switching and the built environment: United States, 1970-1989, Environment & Planning A, Vol. 26, pp. 715-732. https://doi.org/10.1068/a260715

Beauregard, R. A. (2005) “The Textures of Property Markets: Downtown Housing and Office Conversions in New York City”, Urban Studies, Vol. 42, No. 13, pp. 2431-2442, December 2005.

Beauregard, R.A. (2017 forthcoming) Review of Florida, R. “The New Urban Crisis”. https://doi.org/10.1080/00420980500380345

Boddy, M. (1981), “The property sector in late capitalism: the case of Britain” in Dear, Michael and Scott, Allen J., editors, Urbanization & Urban Planning in Capitalist Society, Methuen Press, London, UK. https://www.taylorfrancis.com/books/e/9781351067997/chapters/10.4324%2F9781351068000-11

Brueggeman, W. B. and Fisher, Jeffrey D. (1977). 1st edition; 2015 15th edition) “Real Estate Finance and Investments”, McGraw-Hill/Irwin, New York, NY, USA. https://www.academia.edu/12863670/Real_Estate_Finance_and_Investments_14th_ed_By_Brueggeman_Fisher

Chichernea, D. et al. (2008) “A Cross-sectional Analysis of Cap Rates by MSA”, Journal of Real Estate Research, Jul-Sept 2008; 30(3), pp.249. https://www.researchgate.net/publication/228180899_A_Cross-Sectional_Analysis_of_Cap_Rates_by_MSA

Derrington, P. (2018, forthcoming) “Chasing Speculative Returns In The Post GFC Recovery: Yield Versus Price Appreciation In Real Estate Investment Objectives”, American Association of Geographers Conference Proceedings, April 2018. https://aag.secure-abstracts.com/AAG%20Annual%20Meeting%202018/abstracts-gallery/12536

DiPasquale, D. and Wheaton, W.C. (1996), Urban Economics and Real Estate Markets, Prentice Hall, Englewood Cliffs, NJ, USA. https://www.worldcat.org/title/urban-economics-and-real-estate-markets/oclc/646029584

Farias, I. and Bender, T. (eds) (2010), Urban Assemblages: How Actor-Network Theory Changes Urban Theory, Routledge, London, UK. https://doi.org/10.1080/02723638.2013.779486

Florida, R. (2017), “The New Urban Crisis: How Our Cities are Increasing Inequality, Deepening Segregation, and Failing the Middle Class – and What can be Done About It”, Basic Books, New York, USA. https://www.goodreads.com/book/show/26240789-the-new-urban-crisis

Fraser, W.D. (1984), Principles of Property Investment and Pricing, Macmillan, London.

Geltner, D. and Miller, N. G. (2000) .Commercial Real Estate Analysis and Investments. Cengage Learning: USA.

Glaser, E.L. (2011) Triumph of the City, Macmillan Press, London, UK. https://www.goodreads.com/book/show/9897152-triumph-of-the-city

Gore, T. and Nicholson, D. (1991) “Models of the land-development Process: a critical review” in Environment and Planning A, Vol. 23, pp. 705-730. https://doi.org/10.1068/a230705

Guy, S. and Henneberry, J. (2000) “Understanding Urban Development Processes: Integrating the Economic and the Social in Property Research” in Urban Studies, Vol. 37, No. 13, pp. 2399-2416. https://doi.org/10.1080/00420980020005398

Haila, A. (2017), “Institutionalization of “The Property Mind”, International Journal of Urban and Regional Research, DOI:10.111/1468-2427.12495. https://doi.org/10.1111/1468-2427.12495

Harvey, D. (1978), “The urban process under capitalism: a framework for analysis”, Journal of Urban and Regional Research, Vol. 2, pp. 101-131. https://doi.org/10.1111/j.1468-2427.1978.tb00738.x

Harvey, D. (1985), The Urban Experience, The Johns Hopkins University Press, Baltimore, MD, USA. https://doi.org/10.7202/1018918arCopiedAn error has occurred

Healey, P. (1991), “Models of the development process: a review”, Journal of Property Research, Vol. 8(3), pp. 219-238. https://doi.org/10.1080/09599919108724039

Kaiser, E.J. and Weiss, S.F. (1970), “Public Policy and the Residential Development Process” Journal of the American Institute of Planners, vol. 36(1), pp.30-37. https://doi.org/10.1080/01944367008977277

Latour, B. (2005), Reassembling the Social: An Introduction to the Actor-Network Theory, Oxford University Press, UK. https://global.oup.com/academic/product/reassembling-the-social-9780199256051?cc=tr&lang=en&

Lintner, J. (1965). “The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets”, Review of Economics and Statistics, Vol. 47 (1), pp. 13–37.

Marx, K. (1867), Capital: A Critique of Political Economy Vol.1. https://doi.org/10.2307/1924119

Mossin, J. (1966). Equilibrium in a Capital Asset Market, Econometrica, Vol. 34, No. 4, pp. 768–783. https://doi.org/10.2307/1910098

Mukhija, v. and Loukaitou-Sideris, A. (eds) (2014), The Informal American City, Cambridge, MA, USA. https://econpapers.repec.org/article/blaijurrs/v_3a39_3ay_3a2015_3ai_3a3_3ap_3a645-647.htm

Piketty, T. (2015).CAPITAL in the Twenty-First Century. The Belknap Press of Harvard University Press, Cambridge, MA and London, England. http://www.hup.harvard.edu/catalog.php?isbn=9780674430006

Plender, J. (2016) “Capitalism: Money, Morals and Markets” 2016 Biteback Publishing Ltd, London, England. https://www.goodreads.com/book/show/25998642-capitalism

Roy, A. (2009), “The 21st-century metropolis: New geographies of theory”, Regional Studies, Vol. 43, pp. 819-830. https://doi.org/10.1080/00343400701809665

Scott, A.J. (1980), The Urban Land Nexus and the State, Pion, London, UK.

Sharpe, William F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk, Journal of Finance, 19 (3), 425–442. https://doi.org/10.1111/j.1540-6261.1964.tb02865.x

Sheppard, E. (2014), “Globalizing capitalism and southern urbanization”, in: Parnell, S. and Oldfield, S. (eds) The Routledge Handbook on Cities of the Global South, Routledge, London, UK. Pp. 143-154. http://www.stellenboschheritage.co.za/wp-content/uploads/Susan-Parnell-Sophie-Oldfield-The-Routledge-Handbook-on-Cities-of-the-Global-South-Routledge-2014.pdf

Simone, A. (2011). “The surfacing of modern life”, City, Vol. 15(3-4), pp. 355-364. https://doi.org/10.1080/13604813.2011.595108

Soja, E. .(1989). Postmodern Geographies, Verso, London, UK.

Storper, M. and Scott A.J. (2016). Current debates in urban theory: A critical assessment, Urban Studies, Vol. 53(6), pp. 1114-1136. https://doi.org/10.1177/0042098016634002

Thrall, G.I. (2002). Business Geography and New Real Estate Market Analysis, Oxford University Press, UK. https://global.oup.com/academic/product/business-geography-and-new-real-estate-market-analysis-9780195076363?cc=tr&lang=en&

Treynor, J. L. (1962). Toward a Theory of Market Value of Risky Assets. Unpublished manuscript. A final version was published in 1999, in Asset Pricing and Portfolio Performance: Models, Strategy and Performance Metrics. Robert A. Korajczyk (editor) London: Risk Books, pp. 15–22.

Weber, R. (2015). From Boom to Bubble: how finance built the new Chicago, University of Chicago Press, MI, USA. https://doi.org/10.7208/chicago/9780226294513.001.0001

Downloads

Published

2021-01-22

How to Cite

Derrington, P. (2021). Property and Thomas Piketty: Casting the Lens of Thomas Piketty’s Capital in the Twenty-first Century on Inequality in the Urban Built Environment. Journal of Contemporary Urban Affairs, 2(2), 90–105. https://doi.org/10.25034/ijcua.2018.4674