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| The Effect of the Tax Reform Act of 1986
and Regional Economies on Apartment Values Author: Stanley D. Smith and Larry R. Woodward Start Page: 259 Abstract: The theoretical
effects of the Tax Reform Act of 1986 on commercial real estate have been widely written
about; however, little empirical work has been done that actually measures the
hypothesized effects. We find that, after controlling for general national economic
conditions and regional effects, the effect of the Tax Act of 1986 was negatively related
to apartment values. The magnitude of the effect was a function of the local vacancy rates
and economic growth where those regions with slow economic growth and high vacancy rates
were strongly affected. |
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