Chapter 1INTRODUCTION TO REAL ESTATE
ECONOMICS
What is Economics?The study of allocating SCARCE resources.
Using those scarce resources to produce, distribute and consume goods and services.
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.
What is Real Estate?
Land and attachmentsAppurtenances That which is immovable by law
Real EstateEconomics
General EconomicsPrinciples
and Theory
Real EstatePrinciples
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
Real Estate Economics is NOT:The study of general economics.The study of real estate practice.
Why study Real Estate Economics?Understand value fluctuationsEstimate real estate valuesSolve problemsUnderstand fluctuations & changes to local
Real Estate markets.
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.
The Stairway of Real Estate Economics
Basic Economic Principles
The Stairway of Real Estate Economics
Basic Economic Principles
Government’s Role in the Economy
The Stairway of Real Estate Economics
Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
The Stairway of Real Estate Economics
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
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
Basic Economic Principles
Government’s Role in the Economy
Real Estate and the National Economy
Taxes, Land Usage, and Environmental ControlsReal Estate Market Analysis
Regional and Community Analysis
The Stairway of Real Estate Economics
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
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
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