Economic influences include local median income, unemployment and vacancy rates, as well as mortgage availability and interest rates. Governmental influences include rent controls, taxes, fees, regulation, mandatory inspections, building codes and zoning. Social influences include family size, population age, shifts, and changes in housing tastes and preferences. The climate is a good example of a physical influence on value. In northern areas cottages demand the highest prices for about three months in the summer and a much lower price in the winter.
Southern areas are, of course, the reverse.
In fact, a landlord in a resort area can usually receive the same rents in a three month season as they get for the same unit over a whole year lease. Desirability causes a majority of prospective buyers to want to own the property. Utility makes a property useful to a majority of prospective buyers. Scarcity causes a majority of buyers to want to act faster, since fewer other properties similar to the subject property are available at the same time. Transferability is the ability of a majority of buyers to afford the price or terms that allows more buyers the opportunity to purchase.