Real Estate and Urban Economics

This course is designed to provide a detailed introduction to the economic forces at work in urban real estate markets. This course will emphasize interactions among the three primary sectors making up a regional real estate market: the property market, the capital market, and the market for development. Specific applications of economic theory will include the development of a model of urban land markets, the valuation of embedded options held by landowners, tenure choice, and the construction of a stock-flow model of a residential real estate market. This will allow us to make predictions about the importance of neighborhood, regional, and national events on prices and supply in real estate markets. The analytic components of the course will be complemented with some analysis of real estate market data.