Conference Agenda

Abstract: This paper considers the relationships between disruptions, dual agency in housing markets, and house sales prices in the state of Virginia. Disruptions – either policy or natural – can impact housing markets. Examples of disruptions include legislative disruptions, such as new regulations; and more global disruptions due to economy-wide shocks, such as health or natural disaster disruptions. We first develop an identification strategy to test the hypotheses that these types of disruptions can impact how dual agency affects house prices. Then we examine how two specific disruptions impact the relationships between dual agency listings and house sales prices. The first set of disruptions includes the 2011 announcement and the subsequent implementation of new Virginia legislation requiring disclosure of dual agency to homebuyers, and how these events affected the relationship between dual agency and Virginia house sales prices. Second, we consider how the Covid pandemic that began in March of 2020 led to differential house price impacts for listings with dual agents. We also control for the simultaneity between sales prices and time on the market. In our full-blown specification, we find no significant effect of the 2011 disclosure legislation on the relationship between dual agency and house prices. But there is a significant negative impact on sales prices, of approximately $9,400 to $9,900 on average, for dual agency residential listings after the start of the Covid pandemic. This finding implies for listings with dual agents, home buyers were able to purchase homes for less due to this global disruption. In other words, dual agency benefitted home buyers in the context of the Covid disruption.

This study examines the impact of an information shock on the listing outcomes of digital trading platforms. It reports a unique case of the suspension of a data sharing agreement between two Multiple Listing Services (MLS) in South Florida, and investigates the impact of such a (negative) information shock on the sales outcomes of properties on the MLS platforms. The paper first develops a theoretical model involving search and matching frictions, which predicts discounted trading prices being correlated to the degree of cross-MLS brokers' collaboration. Using data involving property listings from the two MLSs, the paper then presents a series of regression analyses and depicts that there is approximately a 3% price reduction during the data suspension period. This result confirms the theoretical model's predictions, and remains stable and consistent under various robustness checks. Our results also reveal heterogeneous pricing and liquidity effects due to such an information shock.

The purpose of this paper is to investigate some important aspects of the profession of real estate agents on the residential housing market. Based on a survey among the in all 7,260 registered real estate agents in Sweden, two specific types of encounters experienced in the exercise of their profession are explored. The paper focuses on the experiences of real estate agents with regard to being threatened by a buyer or being offered a bribe by a buyer to close a deal before an sales auction.

As markets for real estate agency function quite differently between countries around the world, we also give a short overview of the specific attributes of the Swedish model of dual agency on the residential real estate market as compared to literature on the same models for the profession in other countries. As there are no (or at least so few that they can be neglected when studying the functioning of the market) buyer agents on the Swedish market, the assigned seller agent advertises the home and gets a number of interested buyers with whom he or she holds an auction to find the best price. The seller has the last word in choosing with whom to make the deal, but in fact the highest bidder is the winner and the agent closes the deal filling out all necessary documents for both parties, making contacts with both parties’ banks and setting up meetings for closing the deal.

However, the results from the survey show that the investigated real estate agents report being offered special benefits as well as having been threatened while practicing their profession.

Two logistic regressions were run to identify the effects of a model consisting of 15 independent variables (10 context-specific variables and 5 respondent-specific variables) on the two studied dependent variables (bribes and threaths) describing possible problematic situations accounted by the Swedish real estate agents. The results of these regressions are independently presented in the paper.

Direct logistic regression was performed to assess the impact of the chosen factors on the likelihood of respondents reporting having been offered “a bribe” (extra money or the possibility to get hte contract to sell another home) to close a deal before an auction while working as a real estate agent. Six of the independent variables made a unique statistically significant contribution to the model: having colleagues that was giving misleading information to sellers; respondents in major cities; male respondents; reporting working to much; more experienced agents; younger agents.

Direct logistic regression was also performed to assess the impact of a number of factors on the likelihood of respondents reporting having been threatened by a client while working as a real estate agent. The results show a statistically significant effect of seven different factors: Agents reported having colleagues giving misleading information to buyers; agents working in a major city; reporting having colleagues giving misleading information to sellers; agents that did not see the rules and regulations for agents as clear; agents reporting having a too heavy work load; agents reporting that they worried about their daily work; and agents with more experience.

Consumer protection relating to activities of real estate agents have been discussed widely since the financial crisis of 2007-2008 as they are important mediators of knowledge in any local residential housing market and as their customers – lay consumers – often lack knowledge on market functions as well as on the specific regulations and rules regarding the sale of residential property. Knowledge on the professional circumstances under which real estate agents are working is of interest for the business as well as for policy-makers and the public.

Keywords: real estate agent, threats, bribe, Sweden, residential housing market

Real estate agents who are interested in maximizing their sales commissions may want to consider the impact that their brokerage firm’s organizational culture may have on their incomes. They may also be interested to know whether the size and age of their brokerage firms correspond to four popular organizational culture types (clan, hierarchical, market, and adhocracy). We analyzed these relationships via a survey we distributed to United States real estate agents. Results provided support for hypotheses indicating that features of clan cultures were prevalent in small firms with 20 or fewer employees and in younger firms under six years, while features of market cultures were prevalent in larger and older firms. Market and adhocracy cultures correlated positively with brokerage firm size. We also found that adhocracy culture features in younger firms. Real estate commissions were highest in market cultures, followed by clan, adhocracy, and hierarchical cultures. Linear regressions and bootstrapping further supported a negative relationship between hierarchical cultures and real estate commissions and a negative relationship between adhocracy cultures and the age of firms. Theoretical and practical implications are offered.

We study the effect on economic outcomes resulting from locational advantages of intermediaries through the lens of brokered transactions in the commercial real estate market. Specifically, we explore how locational advantage influences pricing outcomes and highlight the underlying channel. The empirical analysis is conducted on a dataset of over 210,000 commercial real estate transactions across the US. The results from our analysis suggest that brokers that have a locational advantage generate sales price premiums. Our findings are robust to a range of alternative explanations. Furthermore, we present evidence that transactions that involve brokers that have a locational advantage sell faster, the negative effect of disrupted markets is less pronounced when a broker that has a locational advantage is involved, and brokers that have a locational advantage are more likely to bring distant buyers to the table. Thus, we highlight the channel relating to locational advantage as a reduction in search and matching frictions due to an expansion in the auction house through an expanded network of the broker.

This paper examines housing market outcomes of transaction brokerage relationships. In contrast to single agency brokerage where a real estate broker represents either a buyer or a seller in a housing transaction with complete loyalty, transaction brokerage is an arrangement recognized in some U.S. states whereby a broker provides limited representation to both the seller and buyer in the same transaction with only limited loyalty to each party. In such an arrangement, the broker is presumed to merely be facilitating a transaction between the parties without working to the detriment of either party at the expense of the other party. The broker’s loyalty to both parties is limited to confidentiality regarding the price the parties are willing to pay/accept in a transaction, the motivations of the parties to enter a transaction, and the terms the parties are willing to accept in a transaction. Transaction brokerage also stands in contrast to dual agency arrangements, which supposedly allow a broker (supposedly, because it is illogical) to represent both parties simultaneously with complete loyalty and confidentiality to both parties. While dual agency requires written acceptance from both parties, transaction brokerage arrangements do not require disclosure to either party unless the broker is transitioning from a preexisting single agency relationship with either or both parties. (In all three forms of representation discussed here, brokers owe all parties fair and honest dealing and accurate accounting for all funds entrusted to them.) This study investigates whether transaction brokerage impacts price and/or time-on-market using a large data sample of house transactions from Florida, a state that prohibits dual agency but permits a very similar acting transaction brokerage. The results indicate that prices are inversely related to transaction brokerage arrangements, to the benefit of the buyer and detriment to the seller.

This study presents findings regarding the influence of information asymmetry on the dynamics of housing search and matching. We use a unique dataset to gather detailed observations of property-related information, real estate agents, and the involved buyers and sellers.
Discrepancies in the prices buyers pay for nearly identical houses prompt an exploration of information asymmetries in housing markets. It is plausible that buyers from outside the area face higher search costs and possess less knowledge about the local market compared to current residents. Additionally, non-local buyers might base their price expectations on market conditions in their hometowns, thereby affecting the final transaction outcomes. Furthermore, variations in demographic characteristics, such as income, age, education, and ethnicity among homebuyers, may result in differing abilities and willingness to engage in effective search and negotiations.
We focus on real estate agents' role in mitigating information asymmetry in housing markets. In particular, we examine the role of real estate agents in the matching (or not) of counterparties of different nationalities or racial or ethnic groups and the effects on transaction outcomes.

Purchasing a house represents an economic and emotional investment for homebuyers. Besides financial considerations, the ability to see themselves and their families live in a house and make it a home impacts homebuying decisions. The purpose of this study is to assess the extent to which “home”-related features as opposed to “house” characteristics mentioned in MLS listing texts impact sales prices. In particular, we assess the pricing effects of words relating to home (kids & pets, recreation) and house features (kitchen, baths, condition, architecture) in listings.

To derive our measures of home and house characteristics, we employ a textual analysis (dictionary) approach. Our study brings together the residential brokerage literature, which focuses mainly on the economic aspects of homebuying, and other literatures that focus on the emotional and social aspects of a home. It hereby not only contributes to the literature on textual analysis in real estate and residential brokerage, but also has implication for brokers and their marketing strategies.

We provide novel evidence that the irrational dividend preference of some public market investors, commonly referred to as the free money fallacy, leads to elevated price-to-NAV (PNAV) ratios for US Real Estate Investment Trusts (REITs). The PNAV ratio proxies for the divergence of valuations in the public markets (price) and the private real estate market (NAV). While the traditional view purports the public market efficiently prices the real estate portfolio and the private market is an imperfect lagging indicator, a large body of behavioral finance literature has identified various ways in which public market investors make inefficient decisions. One such way is how investors appear to value dividend returns more than capital gains returns, when in reality they are equally valuable, all else equal. Given REITs are specialized investment vehicles requiring high dividend payout ratios, they are ideal candidates for a subset investors with significant dividend preferences to flock to. If investors have an irrational preference for dividends, they may over-pay for REITs in the public markets, leading to a divergence in pricing with the private markets, where dividends are not considered in the pricing equation.

To test this hypothesis, we test whether variables that capture when REIT dividends are potentially more attractive leads to higher PNAV ratios. First, we find that PNAV ratios are significantly higher in low interest rate environments. This captures the view that dividend income is a substitute for bond income. Second, we measure the relative dividend yield between a REIT and the S&P500. When a REITs dividend yield is particularly high relative to alternatives, PNAV ratios are significantly higher. These unique findings provide nuance to the ongoing debate regarding what drives public and private pricing divergence in the US real estate market.

This paper investigates the relationship between motivated institutional investors and REIT operational efficiency. We find that total institutional ownership appears to have minimal impact on REIT operational efficiency. However, motivated institutional shareholders are significantly associated with operational efficiency gains, a finding that is robust across multiple methodologies. We find the relationship between motivated institutional investors and REIT efficiency more pronounced in larger REITs and those with more financial leverage. This research advances the REIT literature by highlighting the impact of motivated institutional investors on REIT efficiency and offering actionable insights for industry stakeholders.

Traditional capital structure theories face severe limitations when applied to securitized real estate and REIT markets. Most notably, the regulatory environment faced by these firms dramatically alters their economic incentives and limits their ability to self-finance growth and expansion activities. As such, firms in this industry with continuing needs for external capital are uniquely positioned to benefit from reduced valuation uncertainty engendered by enhanced information flow. Against this backdrop, the current investigation examines whether, and to what extent, options market trading intensity serves as a value-relevant, noise reducing information signal which may be used to inform REIT borrowing and capital structure decisions. Specifically, we document increased REIT options market trading activity is associated with reductions in both overall firm leverage levels and changes in firm leverage. Additionally, increased options market trading intensity is associated with a relative increase in the use of unsecured debt and corresponding reduction in the use of collateralized bank debt and term loans. Together, these findings suggesting the enhanced information flow and resulting price discovery attributable to option market activity allows REITs to retain financial flexibility and ensure continuing access to credit. Finally, these results appear to be most pronounced in geographic regions free from market disruptions associated with political corruption, as well as within firms that are financially constrained and/or characterized by enhanced growth opportunities.

We analyze the relationship between retail sales and fees in the non-traded REIT market. We find evidence that brokers direct retail clients to high-fee products. Retail investors purchase more shares in non-traded REIT offerings that pay brokers higher compensation, including commissions and dealer manager fees, although these upfront fees reduce the amount available for investment. Our results are based on regressions that compare sales and fees both across REITs and for different share classes within the same REIT offering, mitigating concerns of omitted variables. The non-traded REIT offerings awarding brokers higher fees also tend to pay the REIT’s advisor a higher annual management fee which reduces cash distributions, indicating conflicts of interest between brokers and retail investors.

Previous studies show that the correlation of stocks with a number of other asset classes is asymmetric and higher on the downside than the upside. If the REIT/stock correlation displays a similar asymmetric profile, especially in periods of financial crisis, the value of REITs as a diversifier is questionable. This paper therefore examines the asymmetric correlation between REITs and stocks, using the concept of exceedance correlations.

Using daily data, the empirical results indicate that the correlation between REITs and stocks is time varying and asymmetric. In addition, downside exceedance correlations were higher than the upside exceedance correlations. Lastly, the exceedance correlations became substantially higher in periods of financial crises. This indicates that if fund managers ignore the time varying nature of the REIT/stock asymmetric correlation profile, during the portfolio construction process, it will reduce their ability to mitigate risk through diversification when needed most.

The research employs a dual-method approach, integrating spatial hedonic pricing models and Advanced Interrupted Time Series Difference-in-Differences (AITS DID) analysis, to assess the impact of BRT on residential property values. The study's findings reveal complex and varied impacts of BRT on the housing market. In the Mesa corridor, a positive impact on property values is observed, potentially due to higher residential expectations. Conversely, in the less affluent areas of Alameda and Dyer, an initial negative impact is followed by a gradual positive trend post-BRT implementation, indicating a growing appreciation for the BRT system and associated urban improvements.

These results suggest that the introduction of BRT systems can have differential impacts on housing markets, influenced by the socio-economic characteristics of the areas they serve. The study highlights the importance of considering local context in real estate development and public transportation development. It provides valuable insights for real estate developers and urban planners, emphasizing the need for tailored approaches to infrastructure development to foster equitable real estate development and enhance the overall quality of life in diverse urban settings.

In June 2023, the US Congress introduced a bill that would prohibit public housing agencies from breed restrictions on pets and discourage them from imposing size and weight restrictions. Governor Ron DeSantis signed into law a bill preventing dog weight and breed restrictions in public housing on June 17, 2023. In Ohio, lawmakers are considering a bill that would provide a $750 tax credit to landlords who allow pets (without any breed or weight restrictions) in buildings with less than 10 units.

While the changes to Florida law do not impact privately owned housing units, they do show a shift in attitude and policy that may extend to the broader housing market. Thus, we re-examine the question of pet restrictions in the Florida condominium market using data from 2017-2018. Rather than focusing on price changes, however, this study focuses on the marketability of condominiums with pet restrictions. Previous studies have only focused on price premiums or discounts but not on the changes to time on market or the probability of sale.

This research examines the transitory nature of real estate salespersons based on economic conditions. In particular there is a large percentage of real estate agents that have received their license only to allow it to expire at the end of the two-year renewal period. In one example, a licensee allowed their license to expire and renew it on five different occasions over the period, 1998-2022. We examine the number of licensees over two decades including both the “Great Recession”, the COVID pandemic and the recent run up in interest rates impacting the housing market.

The Taxpayer Relief Act of 1997 amended U.S. Internal Revenue Code Section 121, allowing homeowners to exclude up to $500,000 in realized capital gains from taxation if the homeowner held the property for at least two years. While this is one of many Federal tax law provisions enabling real estate capital gains to be sheltered from taxation, we investigate repeat sales transactions across a number of tax jurisdictions to describe the contexts in which this 1997 policy has created an incentive to hold property longer than desired to qualify for the tax relief. Notably, we find holding period trend discontinuities beginning at exactly the 730th day (two year) threshold for properties realising capital gains after the policy took effect in 1997. These discontinuities disappear for sales realising capital losses and for repeat sales before 1997, suggesting a causal link with the 1997 tax change. Across 25 years of data where the policy was in effect, the number of sales delayed to meet the 730 day requirement is small as a percentage of total sales, suggesting only minor disruption of incentives. Furthermore, the discontinuity is strongest in jurisdictions without local property tax price controls, suggesting that competing tax incentives to hold property for longer than two years may be more valuable to homeowners. These findings have interesting implications in the context of currently historical low housing inventory across the U.S., providing additional evidence that tax policies, along with fixed interest rate financing, motivate longer holding periods and thus, reduce inventory supplied from the existing stock of homes.

Today, successful building owners and landlords understand that tenant loyalty requires leveraging a building’s products and services to create a memorable customer experience. This has become known as operational real estate. Operational real estate is driving meaningful change in the commercial real estate sector and more institutional capital is moving towards this as the experience economy burgeons.

We study the relationship between hotel managerial ability and its asset value. The value of a hotel asset depends on many factors including location and market, property characteristics, and brand affiliation. In this paper, we investigate whether managerial ability is valued and whether managerial efficiency is reflected in market transactions. We collected our data by merging the following two sources. The hotel transaction data is from CoStar, a large real estate transaction dataset that covers all historical hotel sales and real estate characteristics over the period of 2000-2023. The hotel managerial performance information is from CBRE hotels.

In this paper, we first measure different hotels’ managerial abilities. We use Data Envelop Analysis proposed by Demerjian, Lev, and McVay 2012, a non-parametric statistical model used to evaluate the relative efficiency of separable hotels, known as “decision-making units” (DMUs), where each DMU converts certain inputs (labor cost, marketing, and sales, etc.) into outputs (total hotel revenue). Our results show that a one-standard-deviation increase in the hotel's managerial ability is associated with a 20% higher sale price.

Reference:

Peter Demerjian, Baruch Lev, Sarah McVay, (2012) Quantifying Managerial Ability: A New Measure and Validity Tests. Management Science 58(7):1229-1248.

Artificial intelligence (AI) has the potential to redefine the way we value property, presenting the contemporary valuer with a new suite of skills to pursue. This research seeks to define the residual skills necessary to complete a valuation in today’s technology augmented practice.

This paper commences with a revisit of research into skills development within Australian universities and the emerging role of technology, specifically AI, in preparing valuations. The latter part of the research presents valuation as a framework, or environment, where tasks and roles are allocated. The mapping and allocation of tasks requires careful consideration of ecological and symbiotic relationships, between the human valuer and AI. The residual role of the property valuer defines the new skills necessary to complete a practical valuation.

This abstract presents an overview of our research paper which focuses on the analysis of models and factors that influence housing prices. Previous studies conducted by Sirmans, Macpherson, and Zietz (2005) have reviewed papers published in real estate journals up until 2005. Building upon their work, Khoshnoud, Sirmans, and Zietz (2023) have extended the analysis to include the most recent papers published in real estate journals. However, our paper specifically examines articles published in non-real estate journals that utilize hedonic regression analysis to estimate house prices.

In our review, we compare the determinants of house pricing and assess their frequency of appearance in the studies. Furthermore, we discuss the different models and techniques employed by researchers in these non-real estate journals. Our analysis is based on a comprehensive review of house pricing articles published in non-real estate journals from 2005 to 2023.

To broaden our perspective, we explore various journal categories, including Geography, Environment, Economics, Insurance, and Transportation. By comparing studies published in real estate and non-real estate journals, our objective is to provide insights into the similarities and differences in how housing prices are examined and understood across different academic disciplines.

Eminent domain litigation requires experts to understand the nuances of "Special benefits" that may be positive or negative to a property owner. It is imparative to know the federal and state laws pertaining to a particular compensation. When a condemning authority initiates a process for a taking, a time window is implicitly created for valuation estimates. We investigate the criteria and potential effects of the pre announcement, announcement, and execution of a taking. We then use cases and sales of property around the dates of announcements to illustrate when there is sufficient knowldge of a future project to justify excluding price effects from compensation measurements.

This research examines the impact of the performance of their football team for Universities in the Southeastern Conference (SEC). In particular, the study looks at how SEC football program performance impacted, if at all, the housing markets in the area. We examine both the housing values and rents in these communities. In particular, we examine the house and rent values relative to the unemployment, population, median household income, university enrollment, number of football wins, total points scored, whether or not the football team played in a bowl game and ultimately whether or not they played in the national championship.

This paper examines the role of agent connectedness in a trading network, using a dataset of over 40,000 housing transactions from Atlanta, GA to construct dynamic agent connectedness measures. Our findings suggest that agents with diversified network connections and a high level of connectedness tend to achieve better transaction outcomes. Specifically, agents with a diversified network of connections tend to sell properties at higher prices, without taking more days-on-market for their listings. The network connectedness of the listing agent is critically important for the transaction outcomes when the house is highly unique relative to other houses in the same market area. Furthermore, we observe that agents with more experience and diversified network connections, relative to other agents, tend to have a higher listing price, a higher sales price, and a smaller discrepancy between the listing price and final sales price. Our study highlights the significance of a listing agent’s network connectedness in achieving successful transaction outcomes in residential real estate.

We examine the effect of brokerage connections in a study of investment property transactions across the United States over the last decade. Specifically, we study the effect of the sale broker being connected either to the seller or the sale broker completing the sale with a connected buyer. Transactions in which the sale broker is connected to the seller trade at a premium and this may be attributed to incentives relating to future business opportunities. Furthermore, transactions in which the sale broker brought a connected buyer to the table sell at a higher price. In terms of the underlying channel relating to sales involving a connected buyer, our findings suggest that brokers enhance the auction house through their Rolodex resulting in a reduction in the time on the market, facilitating sales in adverse markets, and bringing distant buyers to bid. Thus, the analyses suggest that connections facilitate search within and across markets.

This project studies seller’s value of employing real estate agent services and estimates the principal agent problem in the industry taking into account agent heterogeneity. Both the seller (principal) and the real estate agent (agent) would like a transaction to happen at a highest possible price. However, in a case of a failed sale, a seller continues to own the property and can attempt to sell it again, while an agent walks away with nothing. Consequently, agents care more about closing the transaction and are likely to incentivize sellers to lower their asking price to attract more buyers. Using proprietary data on over 60 million listings, I find that the principal-agent problem is more severe in experienced agents as evidenced by slightly lower list prices all else equal for listings they represent. However, experienced agents are much better at selling homes for their clients at any price point. Informed by these findings I build a housing search model to formalize the trade-off between prices and sale probability. I allow experienced agents to have access to “better technology” which endogenously results in a higher chance of finding a buyer at any given price point. Working with experienced agents, a seller would prefer to take advantage of this technology premium and list their home at a particularly high price. However, experienced agents particularly dislike the no-sale outcome because of reputational concerns and their opportunity cost of time. As a result, they choose to list the homes at much lower prices relative to sellers’ optimum. I estimate model parameters using results from the empirical analysis and find that benefits of higher sale probability from working with top agents significantly outweigh the costs of lower list prices. Quantifying these trade-offs allows me to back out the “fair” (relative) commission rates for agents of different experience levels. I find that working with a top agent is worth as much as 2.5% of the house sale price relative to the value of working with an inexperienced agent.

Rent regulation has seen increasing legislative momentum in many places, but are landlords adhering to these policies? Answering this question is critical to understand the policy's impact. We investigate non-compliance with rent caps using data from the rent stabilization policy in New York City. We uncover evidence indicative of widespread rent overcharging. Our analysis, based on panel data between 2005 and 2008, reveals that over 30% of tenants in rent-stabilized apartments without turnover were likely overcharged. Moreover, we find that minorities in rent-stabilized units are about 20% more likely to be overcharged than their White counterparts. This empirical pattern is robust after accounting for measurement errors in rent increases, alternative model specifications, and location fixed effects. Additionally, in contrast to rent-stabilized units, landlords of unregulated market units do not disproportionately increase rents for minority tenants. Furthermore, we present suggestive evidence that, compared to similar Whites, minorities who are less aware of the policy, have lower educational attainment, and are from lower-income groups, are at a greater risk of rent overcharging.

Housing prices are rising faster than incomes in many areas of the world, reducing well-being and engendering social discontent. Passivity by municipal and national governments is no longer an option. In this essay, I will describe the tradeoffs between different housing policy objectives of governments and the public. I suggest that policy goals should be made explicit, and their tradeoffs acknowledged. Due to the durable impact of real estate development, housing and land-use policies should seek broad inter-partisan consensus. To avoid pernicious general equilibrium effects and because of limited public resources, subsidies ought to be carefully targeted. I will describe the thirty major economic strategies underpinning housing policies worldwide and discuss their main advantages and caveats. Effective housing programs must skillfully deploy a combination of these basic economic strategies, as I will illustrate through several global case studies. Programs should be carefully designed to anticipate behavioral responses from individuals, firms, governments, and markets. Unideological and professional implementation is critical for their success.

The COVID-19 pandemic further extended the multi-year housing boom in advanced economies and emerging markets alike against massive monetary easing during the pandemic. In this paper, we analyze the pricing-out phenomenon in the U.S. residential housing market due to higher house prices associated with monetary easing. We first set up a stylized general equilibrium model and show that although monetary easing decreases the mortgage payment burden, it would raise house prices, lower housing affordability for first-time homebuyers, and increase housing wealth inequality between first-time and repeat homebuyers. We then use the U.S. household-level data to quantify the effect of the house price change on housing affordability relative to that of the interest rate change. We find evidence of the pricing-out effect for all homebuyers; moreover, we find that the pricing-out effect is stronger for first-time homebuyers than for repeat homebuyers. The paper highlights the importance of accounting for general equilibrium effects and distributional implications of monetary policy while assessing housing affordability. It also calls for complementing monetary easing with well-targeted policy measures that can boost housing affordability, particularly for first-time and lower-income households. Such measures are also needed during aggressive monetary tightening, given that the fall in house prices may be insufficient or too slow to fully offset the immediate adverse impact of higher rates on housing affordability.

This paper studies the value of clean air. By exploiting the cross-city variation in the implementation timing of China's clean air policy and using a panel dataset of 280 cities over 2003-2018, we find that the implementation of the clean air policy boosts housing values by 4.4%. The finding is robust to a series of potential issues, functional misspecifications, and falsification tests. We further examine whether the effect varies across different price-tier cities and changes over time, and we find evidence of such heterogeneous and dynamic effects.

The overall research aim of the PhD project is to better understand the relationship between the physical workplace environment and employee engagement in light of a post-COVID-19 workplace ecosystem. Subsequently, the research objectives are: i) to investigate options for the future development of employee engagement metrics and industry approaches to monitoring workplace design and management, ii) to explore the interplay of employee behaviours and environmental factors for employee engagement in hybrid work practices, iii) to better understand the impact of a workplace ecosystem on employee engagement in hybrid work practices, and iv) to explore options for the development of an ‘engaging’ workplace post-pandemic. The PhD project applies a mixed-method approach: quantitative surveys, interview study and qualitative thematic analysis, and content analysis. The key findings of this PhD project are: i) traditional employee engagement metrics and industry approaches to monitoring workplace design and management do not fully reflect the recent shift to hybrid work patterns in the context of the post-pandemic workplace ecosystem (i.e., home, office, third places, and urban realm), ii) a workplace ecosystem has a positive effect on employee engagement components (i.e., vigour, dedication, and absorption) via the interplay of environmental and behavioural factors, iii) flexibility - associated with both employee behaviours and the physical workplace – is one of the main drivers of employee engagement in a workplace ecosystem, and iv) the evaluation of a workplace ecosystem needs better alignment between organisational and workplace industry metrics in the wider city context to ensure a successful transition to an ‘engaging’ workplace ecosystem post-pandemic. The PhD project found that the compilation of both a home and the office can strengthen and sustain employee engagement post-pandemic. The PhD project contributes to existing knowledge and practice by i) demonstrating the role of the physical workplace environment (indoor/outdoor) as an antecedent of vigour, dedication, and absorption (i.e., the UWES scale), ii) providing new insights on the role of a workplace ecosystem in employee engagement in knowledge-intensive organisations, iii) informing the global workplace industry regarding the future evaluation of an ‘engaging’ workplace ecosystem, and iv) delivering empirically-based research evidence on employee engagement in knowledge organisations working in a hybrid mode.

Energy efficiency in the built environment is one of the deciding factors in the transition to a carbon-neutral economy. The transition has implications for real estate values and the mortgage credit risk financial institutions face. We study the relationship between a building’s energy efficiency and mortgage interest pricing. To this end, we exploit a granular dataset on securitized residential mortgages issued in the Netherlands. Our results show that lenders cut mortgage interest margins by 3.3 bps for energy-efficient homes and charge a premium for energy-inefficient homes of 1.7 bps. The discount in interest rates is most pronounced for the early years of our sample (up to 9.8 bps). Lenders also tend to be more willing to discount interest margins on energy efficiency for higher-income borrowers. The findings of this paper are pertinent to understanding how lenders factor energy efficiency into their mortgage credit pricing and risk management.

In recent years, Berlin has been the scene of various government interventions in the local real estate market, especially in the residential sector. Alongside measures like the "Mietpreisbremse" (rent brake) and the "Mietendeckel" (rent cap), the establishment of socalled "Erhaltungsgebiete" (urban preservation areas) is one of the most dominant state interventions in the Berlin real estate market. In Germany, urban preservation area statutes are regulations that can be enacted by the municipalities based on the special urban development law according to the German Building Code (BauGB). Since 1995, Berlin has established 74 urban preservation areas to preserve the composition of the local residential population and to avoid segregation and gentrification. This study provides insights into how the designation of urban preservation areas affects local housing prices and whether the objectives pursued by the regulator are achieved. Therefore, a unique data set, including 370,000 apartment transactions between 1984 and 2020, is analyzed. In combination with spatial data, an event study approach and group time average treatment effect estimators according to Callaway and Sant’Anna (2021) are used to investigate the real estate price development before and after the implementation of the respective regulation in comparison to non-regulated properties.

This study examines the relationship between greenways, property crime, and property values in Shelby County, Tennessee, focusing on the Shelby Farms Greenline and the Wolf River Greenway. The study employs spatial models and a difference-in-differences methodology to assess the impact of greenline-related crime on adjacent and nearby residential property values and highlights the importance of carefully considering crime rates in different neighborhoods when evaluating the amenity value of greenways. Through careful analysis, we will gain valuable insight into the true impact of crime on property values adjacent to and within close proximity of greenlines. We will be able to address the perception of crime and how it affects the capitalization of amenities like greenlines when moving from one neighborhood to another. This research aims to provide valuable insights for urban planning, policy-making, and fostering community well-being.

Fintech lenders have rapidly expanded their presence in the US mortgage

market, raising the question of whether they play a role in expanding access

to mortgage credit for underserved borrowers. I use mortgage application data

to investigate the impact of fintech lenders on mortgage credit access and

costs for underserved borrowers. The findings suggest that fintech lenders are

more likely to serve underserved borrowers, such as minority borrowers and

borrowers with higher debt-to-income ratios, implying an increase in credit

access. Even though fintech lenders are charging lower interest rates than

traditional lenders, the total loan cost, which includes origination and other

fees, is higher for fintech lenders than for non-fintech lenders.

Global inequality varies, with the U.S. experiencing historical income disparity, while Denmark stands as a model of lower inequality despite an upward trend. While certain nations may witness rising inequality coinciding with growing disadvantages for the lower-income segment, a prevalent trend, particularly in impoverished regions, involves facing tangible scarcity and hardship. These challenges in poverty-stricken areas include insufficient healthcare, limited medical access, exacerbated health issues, elevated unemployment, unhealthy housing conditions, restricted nutritious food access, heightened crime and violence, social isolation, and limited financial services. The impact is heightened in the presence of visible extreme wealth, intensifying envy and unhappiness. Therefore, this study examines growing inequality in Denmark, comparing it with the U.S. and emphasizing its impact on the real estate industry. Using diverse analytical tools, the research explores causes, consequences, variations in income distributions, and policy considerations of income inequality. Essential metrics like Lorenz curves, Gini coefficients, and Quantile Share Ratios precede advanced econometric techniques such as Ordinary Least Squares (OLS), Pooled OLS, and Fixed Effects in examining income disparities. Investigating income distribution disparities between Denmark and the United States involves nuanced Counterfactual Decomposition techniques utilizing an enriched Oaxaca–Blinder decomposition method. These incorporate economic, demographic, and real estate market variables, aiming to discern specific contributions of these factors, utilizing both non-parametric reweighing and parametric regression methods. The paper identifies education, high income, and well-educated immigrants as contributors to rising inequality. Historical trends, migration patterns, and varying returns to skill, especially in finance and computing, further contribute to skill distribution imbalances and income disparities. Cities with universities experience increased income disparities and higher real estate prices, impacting low-income households.

Finally, this study endeavors to contribute valuable insights for evidence-based interventions that promote equity, inclusivity, and sustainability within the real estate industry, particularly focusing on addressing regional disparities within social policies.

My research investigates the cause and subsequent effect of the prevalence of gender norms leading to gender inequality in the real estate industry by examining its impact on high-level female participation in Botswana, South Africa, and Zambia. Gender studies within the real estate industry are gaining momentum as gender inequality and parity within different facets are becoming global focal topics.

Currently, in the real estate industry, gender parities and inequalities such as gender pay gaps, high ratios of men to women in the workforce, and fewer women in high-level positions are ubiquitous. Consequently, the research topic determines factors causing the increase in gender inequality in high-level positions and identifies ways of alleviating the situation of marginalization from psychological, socioeconomic, cultural, and societal influences. It also determines how the marginalization of the female gender and the existence of relegation have compressed the general females' participation in the real estate industry and how it affects the output and performance of a country's economy and organizations to fill the present-day situation gap.

The input factors that influence women to pursue a career path in five (5) Royal Institute of Chartered Surveyors (RICS) pathways: Commercial Real Estate, Corporate Real Estate, Property Finance, and Investment, Valuations, and Quantity Surveying pathways are identified, and their subsequent effects analyzed.

In conclusion, the research aims to uncover impactful factors influencing women's career selection and high-level participation in the real estate industry from the organizational to the macroeconomic level of the comparative case studies, with a view to developing a theoretical framework that encompasses how gender inclusivity of women at high-level positions can be achieved.

This mixed methods study explored the impact of social capital on objective and subjective career success outcomes of women and men in the commercial real estate (CRE) industry. The research focused on understanding the role of social capital in shaping career success and analyzed the structural characteristics, social resources, and benefits within the social networks of women and men. A quantitative survey assessed the connectedness of women and men to their social networks, and tested the influence of network benefits, including organizational information and resources, mentorship, and sponsorship benefits on objective career outcomes such as promotion, salary, and subjective career satisfaction. Semi-structured interviews further analyzed CRE professionals’ perceptions and experiences with mentorship and sponsorship relationships and career outcomes. The study contributes to Seibert, Kraimer, and Liden’s (2001) integrated social capital theory, offering insights into CRE network structures and the multifaceted application of social capital to career advancement. The findings hold practical value for students, CRE professionals and leaders, HR professionals, and professional industry associations aiming to enhance inclusivity and employee/member experiences. This research addressed occupational sex segregation, contributing to the broader literature on workplace inequality, to inspire organizational changes in industry norms and practices. Implications for practice and areas for further research are provided.