Real Estate Markets: Location, Product, Timing: June 12-13

Course Overview

Understanding the economic fundamentals of real estate markets is crucial for making prudent decisions about investment, management, or development. Too often, assumptions made about occupancy, rental growth, absorption, and competitive supply are based upon guesswork, rather than a broad understanding of the economic factors that drive a local real estate market. This course will provide participants with the latest perspective and economic research about what forces are currently shaping cities, and how US real estate markets will likely behave in the decade ahead. The course will begin by reviewing recent developments in urban land economics. Theories of land pricing and development will be contrasted to explain patterns of urban spatial decentralization, both in population and jobs. The forces determining the future of downtowns versus "edge cities" will be a central theme. The course then shifts to the behavior of metropolitan real estate markets as a whole. From this more macro perspective, the cyclic patterns of economic growth that characterize many metropolitan areas play an equally important role in shaping the success of any real estate venture. The course will develop a number of theories dealing with the causes and consequences of market "cycles," and how these can better be anticipated. The course is aimed at those with real estate experience who can appreciate economic reasoning and research.

Learning Objectives and Outcomes

• Summarize the latest perspective and economic research about what forces are currently shaping cities.
• Describe how US real estate markets will likely behave in the next 10 years
• Explain theories concerning the causes and consequences of market cycles and how they can better be anticipated
• Articulate the economic factors driving local real estate markets
• Discuss the forces that are currently shaping cities.

Instructor Bio

William C. Wheaton is a professor in the MIT Department of Economics. Since the Center's inception, he has taught the core course in Real Estate Economics. Professor Wheaton also operates a real estate forecasting firm through CB Richard Ellis.