Economics of property markets
The impacts of regulation
The sources of equity and debt financing
This is a project-based style workshop spanning real estate mathematical finance, housing, regional science, public policy, and urban economics. We offer a unique opportunity for the exchange of ideas and the application of research relevant to applied decision making in real estate finance and urban economics. The workshop provides new insights into the intersection of real estate finance, urban economics, and spatial big data analysis. It draws upon original research of the utmost quality to probe into most exhilarating questions about real estate dynamics. Through hands-on quantitative research projects, students should be able to have a firm grasp of the techniques essential to understanding and evaluating housing markets, capital markets, the urban economy, land use, environmental sustainability, urban transportation, and public finance and policies.
Project for Week 1: Understanding real estate price dynamics and regulations in Chinese cities.
Session 1: The Real Estate Sector
An introduction of the most fundamental concepts, principles, analytical methods and tools useful for studying the housing markets; Comparative statics: predicting changes in real estate markets.
Session 2: Micro and Macro Economic Analysis
A thorough review of urban economics concepts; Case studies: comparing urban policies and their implications for real estate in U.S. and China.
Session 3: Residential Land Markets: Prices and Land Use
Location and rents: spatial equilibrium; urban growth, rents, and prices.
Project for Week 2: Investigating the relationship between urban vibrancy and regional innovation and entrepreneurship capacity.
Session 4: Residential Development
Understanding spatial distribution of residential development, land use, and urban density; Examining transition between land uses (gentrification, redevelopment); Exercise: developing a market forecast: apartments.
Session 5: Office Market, Retail Location, and Shopping Centers
The commercial land market; retail travel patterns and the distribution of stores; pricing, spatial competition, the internet; shopping centers, store clustering, agglomeration; Exercise: simulating potential shopping center demand.
Session 6: Innovation & Entrepreneurship Ecosystem and Labor Market
Historical development and changing technology;
Project for Week 3: Ghost towns? Implications of high vacancy rates for housing markets in China.
Session 7: Centers, Subcenters
Theories of Multiple centered cities; the dynamics of urban subcenter formation; agglomeration and employment clustering.
Session 8: Local Government and Land Market
Property taxes, public expenditure and local services; tax and public policy effects; the fiscal incentives for land use regulation; public goods and "neighborhood" effects; case studies: the gentrification consequences of government investment in local public goods.
Session 9: Macro Analysis of Housing
Demographic, economic influences; moving, vacancy, and sales: the demand for housing quality; housing supply.
Project for Week 4: Estimating housing price capitalization of air pollution.
Session 10: Regional Growth and Real Estate Markets
The Determinants of metropolitan growth; birth rates, migration, and wages; demand and supply shocks, real estate and the cost of living; economic competition within a system of cities; case studies: what happened to Worcester?
Session 11: Urban Mobility
Transportation and shipping costs; congestion, transportation infrastructure, planning regional development; case studies: urban transportation in China (subway and high-speed rail).
Session 12: Real Estate Effects of Environmental Degradation
Transition from production cities to consumption cities; air pollution, health spending and willingness to pay for urban amenities; case studies: pollution for promotion? Understanding environmental degradation in China from a perspective of urban governance and political economy: institutions, incentives, and consequences.