There are scads of good books on state and Federal government, but few on local government. William Fischel's The Homevoter Hypothesis is an exception and is an apparent classic on local government. Fischel's book advances more than an "hypothesis." It is a "correlation" that convincingly describes from case studies and case law how real estate economics drives local government. Fischel reports that housing equity in the U.S. is eleven times as large as liquid assets among all homeowners. Home equity value is the largest asset of private wealth. But this equity value is constantly under threat from external forces ("externalities") beyond the control of property owners except by government intervention. Homes are an immovable asset whose value can't be insured against a wipeout of equity. Homeowners will consent to the impositions of municipal and school district financing, zoning, growth controls, and environmental regulations only to the extent that they protect home values, or can be "capitalized" (converted) into higher property values. Fischel advances what he calls the "Tiebout Hypothesis" (from Charles Tiebout) that "people vote with their feet" by moving or shopping for a locality to maximize their wealth. Actually, because real estate is an immobile asset, Fischel's theorem might be more accurately restated as "people put their feet to the vote" or "stake their home value to the vote."
Fischel sometimes uses elegant terms ("homevoter," "unlovely land uses"), classical phrases ("people who buy houses are more careful about it than almost any other transaction, save perhaps getting married"), and even employs a reverse golden rule of sorts ("municipalities will foist disamenities on their neighbor that they would not do unto themselves"). Sometimes Fischel uses blunt summarization such as when he writes that the "Smart Growth Movement" and growth controls "seem to act more like a cartel for those already in possession of suburban homes than as a rationalizer of metropolitan development patterns." Fischel includes helpful subheadings in each chapter, reminiscent of Machiavelli's classic The Prince, that succinctly tell you what he is driving at. Unlike most economics texts, there are no obfuscating "supply and demand" tables in this book.
My only disappointment with the book is that Fischel did not go far enough. For instance, what just compensation is to be provided to landowners whose property has been downzoned for environmental preservation by local government, then acquired by a state or federal agency, or a non-government organization (NGO), for the same preservation use for which it was downzoned? When local government downzones a property to buy it on the cheap it is typically considered a confiscatory taking. What is the difference when two levels of government act in concert to accomplish the same thing, both in response to the same incumbent home voting constituency? Moreover, such interference with real estate markets often results in a situation where there no longer is available any land sales market data from which to determine the value of a property, except government and non-government organization sales that can not be considered under government real estate appraisal standards (see reviewer's "Valuing Nature Land in 'Extinct' Markets," Appraisal Journal, 1998). Another example would be toxic waste site cleanup policies that are less concerned with the "health effects" than "wealth effects" to surrounding property values (see reviewer's "But is it Market Value?" Appraisal Journal, 1999 and "The Externality Principle: Value Transfers from Toxic Waste Site Cleanups as a Basis for Regulatory Takings," Environmental Claims Journal, 2001). How can "people vote with their feet" when growth controls are meant to put one's feet in cement so to speak? Perhaps Fischel will follow up with a sequel that can address such dilemmas in greater depth? The Homevoter Hypothesis is an indispensable book for city managers, local politicians, zoning and school boards, and the legal and real estate professions. I give it an unqualified highest rating.
Wayne Lusvardi
The opinions expressed above are solely those of the reviewer.

Fischel is an economist, and a member of his local zoning board. He also writes smoothly, unlike an economist, and knows a lot of stories. He has done original research into some of the celebrated cases of property and takings, and provides information and analysis that cannot be found anywhere else in the genre.

His scope is limited to land use issues. He does not take up wetlands, endangered species, or the fights over the public lands of the West. On the land use issues, though, his analysis is supurb.

I regard this book as indispensable for anyone seriously interested in the current controversies over property rights.

-- James V. DeLong is the author of PROPERTY MATTERS: HOW PROPERTY RIGHTS ARE UNDER ASSAULT - AND WHY YOU SHOULD CARE, published by the Free Press in March 1997.

This book is an excellant source book for someone who does not know alot about period details. I learned alot from the book and while I work with antiques everyday I do not see these types of items that often. The book focused on museum quality pieces, not things the common man would find in most antique shops. I would still recomend this book, it is beautifully put together, cohesive and a pleasure to read.

In the subtitle of this book,change "Kye" to "Key"