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 link 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 the progression from basic principles to final real estate decisions.

1. Chapter 1
INTRODUCTION TO REAL ESTATE ECONOMICS

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.

9. The Stairway of Real Estate Economics

10. Basic Economic Principles
The Stairway of Real Estate Economics

11. Basic Economic Principles
Government’s Role in the Economy
The Stairway of Real Estate Economics

12. Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
The Stairway of Real Estate Economics

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