everything.study
11.433

Real Estate Economics

4-0-8 units · Graduate

Develops an understanding of the fundamental economic factors that shape the market for real property, as well as the influence of capital markets in asset pricing. Analyzes of housing as well as commercial real estate. Covers demographic analysis, regional growth, construction cycles, urban land markets, and location theory as well as recent technology impacts. Exercises and modeling techniques for measuring and predicting property demand, supply, vacancy, rents, and prices.

Fall 2008

This course, offered by the {{% resource_link "55c5d8c2-fce5-42cf-8ebb-83d465f6bb48" "MIT Center for Real Estate" %}}, focuses on developing an understanding of the macroeconomic factors that shape and influence markets for real property. We will develop the theory of land markets and locational choice. The material covered includes studies of changing economic activities, demographic trends, transportation and local government behavior as they affect real estate.

Readings

  • In the table below, DiPasquale and Wheaton refers to the following textbook:
    Listed reading
  • DiPasquale, Denise, and William Wheaton. Urban Economics and Real Estate Markets . Upper Saddle River, NJ: Prentice Hall, 1995. ISBN: 9780132252447.
    Listed reading
  • WEEK #: 1 · TOPICS: Introduction · READINGS: DiPasquale and Wheaton, chapters 1-2
    Reading assignment
  • DiPasquale and Wheaton, chapter 3
    Listed reading
  • Waddell, Paul, Brian Berry, and Irving Hoch. “Residential Property Values in a Multinodal Urban Area: New Evidence on the Implicit Price of Location.” Journal of Real Estate Finance and Economics 7, no. 2 (1993): 117-141.
    Listed reading
  • McMillen, Daniel, and John McDonald. “Reaction of House Prices to a New Rapid Transit Line: Chicago’s Midway Line, 1983-1999.” Real Estate Economics 32, no. 3 (2004): 463-486.
    Listed reading
  • DiPasquale and Wheaton, chapter 4
    Listed reading
  • Song, Yan, and Gerrit-Jan Knaap. “New Urbanism and Housing Values: A Disaggregate Assessment.” Journal of Urban Economics 54, no. 2 (2003): 218-238.
    Listed reading
  • Rosenthal, Stuart, and Robert Helsley. “Redevelopment and the Urban Land Price Gradient.” Journal of Urban Economics 35, no. 2 (1994): 182-200.
    Listed reading
  • DiPasquale and Wheaton, chapter 5
    Listed reading
  • Shukla, Vibhooti, and Paul Waddell. “Firm Location and Land Use in Discrete Urban Space: A Study of the Spatial Structure of Dallas-Fort Worth.” Regional Science and Urban Economics 21, no. 2 (1991): 225-253.
    Listed reading
  • Buttimer, Richard, Ronald Rutherford, and Ron Witten. “Industrial Warehouse Rent Determinants in the Dallas/Fort Worth Area.” Journal of Real Estate Research 13, no. 1 (1997): 47-56.
    Listed reading
  • Archer, Wayne, and Marc Smith. “Explaining Location Patterns of Suburban Offices.” Real Estate Economics 31, no. 2 (2003): 139-164.
    Listed reading
  • Brennan, Thomas, Roger Cannaday, and Peter Colwell. “Office Rent in the Chicago CBD.” Real Estate Economics 12, no. 3 (1984): 243-260.
    Listed reading
  • Shilton, Leon, and Craig Stanley. “Spatial Patterns of Headquarters.” Journal of Real Estate Research 17, no. 3 (1999): 341-364.
    Listed reading
  • DiPasquale and Wheaton, chapter 6
    Listed reading
  • Eppli, Mark, and John Benjamin. “The Evolution of Shopping Center Research: A Review and Analysis.” Journal of Real Estate Research 9, no. 1 (1994): 5-32.
    Listed reading
  • Wheaton, William. “Percentage Rent in Retail Leasing: The Alignment of Landlord-Tenant Interests.” Real Estate Economics 28, no. 2 (2000): 185-204.
    Listed reading
  • Eppli, Mark, and James Shilling. “How Critical Is a Good Location to a Regional Shopping Center?” Journal of Real Estate Research 12, no. 3 (1996): 459-468.
    Listed reading
  • DiPasquale and Wheaton, chapter 13
    Listed reading
  • Bogart, William, and Brian Cromwell. “How Much Is a Neighborhood School Worth?” Journal of Urban Economics 47, no. 2 (2000): 280-305.
    Listed reading
  • Oates, Wallace. “Property Taxation and Local Public Spending: The Renter Effect.” Journal of Urban Economics 57, no. 3 (2005): 419-431.
    Listed reading
  • Wheaton, William. “The Incidence of Inter-Jurisdictional Differences in Commercial Property Taxes.” National Tax Journal 37 (1984): 515-527.
    Listed reading
  • DiPasquale and Wheaton, chapter 14
    Listed reading
  • Coulson, N. Edward, and Robin Leichenko. “The Internal and External Impact of Historical Designation on Property Values.” Journal of Real Estate Finance and Economics 23, no. 1 (2001): 113-124.
    Listed reading
  • Thorsnes, Paul. “Internalizing Neighborhood Externalities: The Effect of Subdivision Size and Zoning on Residential Lot Prices.” Journal of Urban Economics 48, no. 3 (2000): 397-418.
    Listed reading
  • Frech, Harry, and Ronald Lafferty. “The Effect of the California Coastal Commission on Housing Prices.” Journal of Urban Economics 16, no. 1 (1984): 105-123.
    Listed reading
  • DiPasquale and Wheaton, chapters 8-10
    Listed reading
  • Eppli, Mark, and Monty Childs. “A Descriptive Analysis of U.S. Housing Demand for the 1990s.” Journal of Real Estate Research 10, no. 1 (1995): 69-86.
    Listed reading
  • Gabriel, Stuart, and Frank Nothaft. “Rental Housing Markets, the Incidence and Duration of Vacancy, and the Natural Vacancy Rate.” Journal of Urban Economics 49, no. 1 (2001): 121-149.
    Listed reading
  • Somerville, C. Tsuriel. “The Industrial Organization of Housing Supply: Market Activity, Land Supply and the Size of Homebuilder Firms.” Real Estate Economics 27, no. 4 (1999): 669-695.
    Listed reading
  • Wheaton, William, and Gleb Nechayev. “The 1998-2005 Housing “Bubble” and the Current “Correction”: What’s Different This Time?” Journal of Real Estate Research 30, no. 1 (2008): 1-26.
    Listed reading
  • DiPasquale and Wheaton, chapters 11-12
    Listed reading
  • Hakfoort, Jacco, and Robert Lie. “Office Space per Worker: Evidence from Four European Markets.” Journal of Real Estate Research 11, no. 2 (1996): 183-196.
    Listed reading
  • Benjamin, John, Chris de la Torre, and Jim Musumeci. “Rationales for Real Estate Leasing versus Owning.” Journal of Real Estate Research 15, no. 3 (1998): 223-238.
    Listed reading
  • Schwartz, Eduardo, and Walter Torous. “Commercial Office Space: Testing the Implications of Real Options Models with Competitive Interactions.” Real Estate Economics 35, no. 1 (2007): 1-20.
    Listed reading
  • Wheaton, Willian, and Raymond Torto. “Office Rent Indices and Their Behavior over Time.” Journal of Urban Economics 35, no. 2 (1994): 121-139.
    Listed reading
  • Grenadier, Steven. “Local and National Determinants of Office Vacancies.” Journal of Urban Economics 37, no. 1 (1995): 57-71.
    Listed reading
  • Wheaton, William. “Real Estate ‘Cycles’: Some Fundamentals.” Real Estate Economics 27, no. 2 (1999): 209-230.
    Listed reading
  • Wheaton, William, Raymond Torto, and Peter Evans. “The Cyclic Behavior of the Greater London Office Market.” Journal of Real Estate Finance and Economics 15, no. 1 (1997): 77-92.
    Listed reading
  • Costello, James, et al. “Real Estate Risk: A Forward-Looking Approach.” Real Estate Finance 18, no. 3 (2001): 20-28.
    Listed reading
  • Hopkins, Robert, et al. “Evaluating Real Estate Risk: Debt Applications.” Real Estate Finance 18, no. 3 (2001): 29-41.
    Listed reading
  • Benjamin, John, G. Donald Jud, and Daniel Winkler. “The Supply Adjustment Process in Retail Space Markets.” Journal of Real Estate Research 15, no. 3 (1998): 297-308.
    Listed reading
  • Roback, Jennifer. “Wages, Rents, and the Quality of Life.” Journal of Political Economy 90, no. 6 (1982): 1257-1278.
    Listed reading
  • Holmes, Thomas. “The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders.” Journal of Political Economy 106, no. 4 (1998): 667-705.
    Listed reading
  • Figlio, David, and Bruce Blonigen. “The Effects of Direct Foreign Investment on Local Communities.” Journal of Urban Economics 48, no. 2 (2000): 338-363.
    Listed reading

Prerequisites & course information

Same subject as 15.021[J] Prereq: 14.01 , 15.010 , or 15.011 G (Fall) 4-0-8 units

Sources