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Equilibrium Models in Real Estate Research: A Survey

Equilibrium Models in Real Estate Research: A Survey Equilibrium analysis is a valuable tool in real estate investment research. In this survey, I show how equilibrium models have been used to estimate the required risk premium for different classes of real estate, to explain real house prices, and to determine investment rental market adjustment and valuation (as well as to predict future rent, price, and value developments). Equilibrium analysis has also increased our understanding of differences in coupon or rental rates on loans or leases with and without various optionlike features. Because the work on leases has lagged that on loans or mortgages, application of the mortgage research methodology to leases is an especially fertile area for research. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Real Estate Literature Springer Journals

Equilibrium Models in Real Estate Research: A Survey

Hendershott, Patric
Journal of Real Estate Literature , Volume 6 (1) – Oct 14, 2004
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Publisher
Springer Journals
Copyright
Copyright © 1998 by 1998 American Real Estate Society
Subject
Finance; Financial Services
ISSN
0927-7544
eISSN
1573-8809
DOI
10.1023/A:1008603313100
Publisher site
See Article on Publisher Site

Abstract

Equilibrium analysis is a valuable tool in real estate investment research. In this survey, I show how equilibrium models have been used to estimate the required risk premium for different classes of real estate, to explain real house prices, and to determine investment rental market adjustment and valuation (as well as to predict future rent, price, and value developments). Equilibrium analysis has also increased our understanding of differences in coupon or rental rates on loans or leases with and without various optionlike features. Because the work on leases has lagged that on loans or mortgages, application of the mortgage research methodology to leases is an especially fertile area for research.

Journal

Journal of Real Estate Literature – Springer Journals

Published: Oct 14, 2004

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