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CHAPTER 2 BASIC REAL ESTATE ECONOMICS

- 30 - CHAPTER 2 BASIC real ESTATE ECONOMICS INTRODUCTION real ESTATE DEMAND real ESTATE DEMAND CONCEPTS DEMAND SENSITIVITY TO PRICE/RENT CHANGES: PRICE ELASTICITY OF DEMAND Impact of Actual Price Changes vs Expected Price Changes EXOGENOUS DETERMINANTS OF real ESTATE DEMAND MEASURING CHANGES IN real ESTATE DEMAND: ABSORPTION CONCEPTS THE SUPPLY OF real ESTATE real ESTATE SUPPLY CONCEPTS The Long-Run Aggregate Supply: Is it Relevant? The Short-Run Aggregate Supply New Construction NEW CONSTRUCTION BEHAVIOR What Determines New Construction?

Urban real estate markets may be peculiar and idiosyncratic in a number of respects, but they ... and identifying real estate development and investment opportunities. The exogenous drivers of the demand for real estate can be classified into the following four categories: • Market Size (Population, Employment)

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