This document introduces real estate economics. It defines real estate economics as the study of how people's actions affect property values using economic principles and analysis of trends, supply and demand, and the links between general economic theory and real estate practice. The document outlines that real estate economics has four parts: basic economic background; understanding real estate markets; major influences on development; and analyzing investments. It presents the "stairway of real estate economics" showing how different economic concepts build upon each other from basic principles to final real estate decisions.
2. What is Economics?
The study of allocating SCARCE
resources.
Using those scarce resources to
produce, distribute and consume
goods and services.
3. Two categories of Economics:
Macroeconomics: study of the national
economy and its segments including
national income, output, employment,
and growth.
Microeconomics: study of individual
firms and households.
4. What is Real Estate?
Land and attachments
Appurtenances
That which is immovable by law
5. Real Estate
Economics
General Economics
Principles
and Theory
Real Estate
Principles
and Practice
What is Real Estate Economics?
A study of people & how their actions affect property values.
• Study that uses economic principles
• Micro and macro analysis
• Analyzes trends
• Considers supply and demand
• Links general economic theory and real estate practice
6. Real Estate Economics is NOT:
The study of general economics.
The study of real estate practice.
7. Why study Real Estate Economics?
Understand value fluctuations
Estimate real estate values
Solve problems
Understand fluctuations & changes to local Real
Estate markets.
8. The four parts:
1. Basic Economic Background for Real Estate
Analysis.
2. Understanding Real Estate Markets.
3. Major Influences on Real Estate Development.
4. Analyzing Real Estate Investment.
13. Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
Regional and Community Analysis
The Stairway of Real Estate Economics
14. Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
Real Estate Market Analysis
Regional and Community Analysis
The Stairway of Real Estate Economics
15. Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
Taxes, Land Usage, and Environmental Control
Real Estate Market Analysis
Regional and Community Analysis
The Stairway of Real Estate Economics
16. Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
Investment Analysis
Taxes, Land Usage, and Environmental Controls
Real Estate Market Analysis
Regional and Community Analysis
The Stairway of Real Estate Economics
17. Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
Final Real Estate Decision
Investment Analysis
Taxes, Land Usage, and Environmental Controls
Real Estate Market Analysis
Regional and Community Analysis
The Stairway of Real Estate Economics
18. Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
Final Real Estate Decision
Investment Analysis
Taxes, Land Usage, and Environmental Controls
Real Estate Market Analysis
Regional and Community Analysis
The Stairway of Real Estate Economics