This might be obvious to anyone who owns a home or has an empty adjacent lot next to his dwelling, but the Press is missing a simple economic key to Rita (Mrs. Tony) Rezko’s ownership a neighboring lot to Senator Obama.
Most homeowners like having a large yard or garden. Even more people like having their neighbors mow and landscape that vacant lot. Having a well kept adjoining green space increases the value of your lot, and your home.
So when Rita Rezko owned and cared for the lot adjoining Sen. Obama’s home in Kenwood, the value of Sen Obama’s home increased. If Rita would have filled the lot with garbage (not all that uncommon in the neighborhood), or built an ugly house on that lot (again not all that uncommon on the South Side), Sen. Obama’s house would have decreased in value.
Lot values in urban areas are dramatically influenced by the condition and size between adjoining lots. Rita Rezko’s ownership of a vacant, but well kept lot, was of significant economic value to Senator Obama.
Read More of The Economics of Rezko's Vacant Lot off-site...John Powers says:
I was just there yesterday evening.
Mr. Patner is correct, Kenwood itself is in very good condition. If you extend its boundaries about 2 blocks, there are plenty of lots filled with garbage, and aluminum sided houses, inconsistent with the Kenwood neighborhood.
There are some ugly vacant lots, and ugly developments on the South Side. There are also some of the most beautiful houses and buildings in the world in the same neighborhoods.
JBP
Andrew Patner says:
Thank you, John Powers.
I am sorry that I had not seen your reply earlier!
Andrew P.
Andrew Patner says:
No defense at all of the Obama/Rezko land deal or connection-- BUT Mr. Powers does not seem to know the Kenwood neighborhood at all if he thinks that "fill[ing] the lot with garbage [is] not all that uncommon in the neighborhood" or that it would "not [be] all that uncommon" to "buil[d] an ugly house on that lot."
In fact, Kenwood has been officially recognized as a protected historic distrct since 1979. It contains the largest concentration of preserved and well-maintained histiric large homes and mansions in the city. There is a strict review process for modifications to houses or lots and for any new construction -- highly limited as theer are no teardowns and very few reamining empty lots.
Houses currently on offer in the district range from $1.8 to $3 million.