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Incentive-based coordination for scheduled delivery in prefab construction

Kim, Y.-W., & Rhee, B.-D. (2024). Incentive-based coordination for scheduled delivery in prefab construction. Construction Management and Economics, 1–16. https://doi.org/10.1080/01446193.2024.2305763.

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Abstract

An increasing number of projects are adopting prefabrication to economize on time, labor, and materials in fixed-position layout operations, such as construction, ship building, and aircraft manufacturing. In such contexts, independent contractor and fabricator make interdependent decisions, which calls for prudent supply chain management because performance relies on coordination between their decisions. Many studies have developed integrated systems and propose various algorithms for scheduling efficiency and reliability. Nevertheless, they pay scant attention to conflicting interests amongst independent partners, which may result in subpar performance not only for the supplier but for the contractor as well. Coordination of conflicting interests has been extensively studied in economics and supply chain management; yet, those studies focus on order-quantity decisions under demand uncertainty for profit maximization, while managers in fixed-position operations are more concerned about delivery decisions under scheduling uncertainty for cost minimization. We consider the case of construction and explore a contractual scheme that aligns the agents' decisions for coordination in a construction supply chain. Specifically, we propose a supplier rebate for coordination: the supplier grants a rebate if the contractor accepts the shipment in accordance with the delivery schedule that the contractor initially chose. We show that the optimal rebate fully coordinates the supply chain to minimize the joint supply chain costs. Thus, both the contractor and supplier benefit from the coordination by negotiating a mutually acceptable way to allocate the savings in joint costs between them. We further show that the rebate motivates the contractor to enhance its work scheduling.

Keywords

Construction supply chain; coordination; delivery schedule reliability; prefabrication; rebate for scheduled delivery

Association between property investments and crime on commercial and residential streets: Implications for maximizing public safety benefits

Walter, R. J., Acolin, A., & Tillyer, M. S. (2024). Association between property investments and crime on commercial and residential streets: Implications for maximizing public safety benefits. SSM – Population Health, 25, 101537–101537. https://doi.org/10.1016/j.ssmph.2023.101537.

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Abstract

Physical property investments enhance public safety in communities while alleviating the need for criminal justice system responses. Policy makers and local government officials must allocate scare resources for community and economic development activities. Understanding where physical property investments have the greatest crime reducing benefits can inform decision making to maximize economic, safety, and health outcomes. This study uses Spatial Durbin models with street segment and census tract by year fixed effects to examine the impact of physical property investments on changes in property and violent crime over an 11-year period (2008-2018) in six large U.S. cities. The units of analysis are commercial and residential street segments. Street segments are classified into low, medium, and high crime terciles defined by initial crime levels (2008-2010). Difference of coefficients tests identify significant differences in building permit effects across crime terciles. The findings reveal there is a significant negative relationship between physical property investments and changes in property and violent crime on commercial and residential street segments in all cities. Investments have the greatest public safety benefit where initial crime levels are the highest. The decrease in violent crime is larger on commercial street segments, while the decrease in property crime is larger on residential street segments. Targeting the highest crime street segments (i.e., 90th percentile) for property improvements will maximize public safety benefits.

Keywords

Violent and property crime; Public safety; Physical property investments

The dynamics of housing cost burden among renters in the United States

Colburn, G., Hess, C., Allen, R., & Crowder, K. (2024). The dynamics of housing cost burden among renters in the United States. Journal of Urban Affairs, 1–20. https://doi.org/10.1080/07352166.2023.2288587.

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Abstract

Housing cost burden—defined as paying more than 30% of household income for housing—has become a central feature of the American stratification system with dire consequences for the health and well-being of adults and children living in burdened households. To date, existing research has largely focused on the overall prevalence and distribution of housing cost burden—that is, the percentage of households that are cost burdened at a given time and differences in exposure to housing cost burden based on race and income using cross-sectional sources of data. To more fully understand the dynamics of housing cost burden among renter households in the United States including the frequency and duration of spells, we use 50 years of longitudinal data from the Panel Study of Income Dynamics (PSID). The analysis reveals that, in contrast to the episodic nature of poverty, housing cost burden is deep, frequent, and persistent for a growing share of American households.

Keywords

Housing cost burden; rental housing; housing affordability; rent burden

Voices of Precarity in Taipei

Chu, A-Yong and Jeffrey Hou. 2023. Voices of Precarity in Taipei. Topos, 125: 78-84. https://shop.georg-media.de/topos-125/

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Abstract

This issue marks 125 issues of topos, the unique magazine for landscape architecture and urban planning. 1 2 5 issues of topos magazine. But: We do not want to use this anniversary to celebrate ourselves. Instead, we want to use this anniversary to focus on an urban issue that is so brutal that almost everyone would rather look the other way than take action: poverty. We want to use this issue of topos magazine to celebrate, in conversation with planners, city leaders and entrepreneurs, those people and projects, that work every day to create a more equitable metropolis of the future that provides warmth, food and shelter for everyone. So this is what’s #125 about. Celebrate with us what truly matters in the city of tomorrow.

Interdisciplinary team awarded an early-stage pilot grant from Population Health Initiative

Population Health Initiative gave 12 early-stage pilot grants to interdisciplinary teams. One team included Rebecca Walter, an associate professor in the Runstad Department of Real Estate. Project title: “Housing affordability and chronic stress in the US: Does affordability modify the effect of neighborhoods on health?” Project team: Amy J. Youngbloom, Department of Epidemiology Stephen J. Mooney, Department of Epidemiology Anjum Hajat, Department of Epidemiology Isaac Rhew, Department of Psychiatry & Behavioral Sciences Rebecca Walter, Runstad Department of Real Estate Project…

Steven Bourassa quoted in Washington State Standard article on Rent Prices Stabilizing

Steven Bourassa is an H. Jon and Judith M. Runstad Endowed Professor and Chair in the Runstad Department of Real Estate, and is Director of the Washington Center for Real Estate Research. Professor Bourassa was quoted in a Washington State Standard story entitled “Rents in Washington show signs of stabilizing,” as an expert in the field. Read the article here. 

Vince Wang a Panelist with Federal Reserve Board of Governors to Discuss Rental Affordability

The Federal Reserve Board of Governors hosts the ongoing “Keys to Opportunity in the Housing Market” seminar series, and in September 2023 featured 2 panel discussions. CBE’s Vince Wang (Real Estate) participated in the panel discussion entitled “Regulatory and Programmatic Strategies to Increase the Supply of Lower-Cost Rental Units.” The other panel topic was “Challenges for Rental Affordability in the Pandemic Era and Beyond.” Assistant Professor Wang discussed inclusionary zoning (IZ) programs and their impact on creating affordable housing. Read…

Mortgage Loan Costs: Magnitude and Drivers of Variation

Arthur Acolin & Rebecca J. Walter (2023). Mortgage Loan Costs: Magnitude and Drivers of Variation. Housing Policy Debate, DOI: 10.1080/10511482.2023.2236984

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Abstract

This article uses national data disclosed as part of the Home Mortgage Disclosure Act (HMDA) to examine variations in loan costs based on type of loan, borrower, purpose (purchase, improvement, or refinance), and neighborhood characteristics. Loan costs are generally higher for nonconventional conforming loans with higher levels of credit risks (loans with higher combined loan-to-value, higher debt-to-income ratios, and for investment properties). This implies that product and borrower risk impact loan costs. However, borrower characteristics such as income and race/ethnicity are also associated with differences in loan costs even after controlling for loan characteristics, location, and lender fixed effects. Total loan costs are higher both in dollar terms and as a share of the loan amount for Black borrowers and Hispanic borrowers, and total loan costs represent a higher share of the loan amount for lower income borrowers. These disparities are larger in neighborhoods with higher levels of lender concentration and implicit racial bias. These findings suggest that in addition to access to mortgages and interest rates, loan costs can represent a barrier for access to homeownership with a disparate impact for Black and Hispanic borrowers, which contributes to perpetuate the homeownership gap.

Keywords

Mortgage loan costs; homeownership; borrowing constraints; homeownership gap