This paper examines economic indicators to show how the role of the real estate industry in the economy has evolved over time. This examination spans the early 1980s through 1999. Our key conclusion includes the followings.
1. In terms of economic flows real estate is as important a part of the economy as ever. About 11% of GDP each year is attributable to the real estate industry. Some parts of the industry, especially those finance and capital market related, have increased share in GDP, while others (services) have remained constant or even shrunk.
2. In a stock measure, household and corporation asset allocations have shown significantly lower shares for real estate. The strong performance of the stock market, growth in household wealth combined with a relatively low income elasticity of demand for housing, and changed corporate behavior appear to have contributed to this decline.
3. The values of real estate in debt and equity markets have increased substantially. Securitizations of mortgage and commercial mortgage have made real estate an increasingly important component in debt market. The prominence of real estate investment trusts (REITs) in the stock market has increased since 1985. However it remains a very small fraction of the overall equity market.
1010 Affordable Housing Amazon Amenitization Architecture Artificial Intelligence Asia Australia automation Autonomous Vehicles bonds Borrowing Constraints Brexit California Canada Capital Business China Co-Working Environment coastal markets cold storage Colombia Commercial Brokerage Commercial Real Estate commissions Congestion consumer bias covid-19 CRE credit card market Credit Default Swaps Credit Insurance Credit Risk Transfers Culture Data Analytics data centers Data Collection Technology Debt Market Demand Demographics Density Development Discrete Choice disruption Diversity drones e-Commerce Economic Corridors economic policy economics education election studies Equity Funds Equity Market Ethnic Factors Europe Fannie Mae financial asset management Foreclosures Foreign Policy France Freddie Mac general equilibrium Global global economy Global Financial Crisis Globalization great depression Great Recession healthy buildings Hedonic hospitality Housing & Residential housing boom Housing Disease housing prices Housing Supply Identity Income Inequality India inflation Inter-generational mobility interest rates Investing jobs labor market Lagging Regions land use regulation Language life sciences Macroeconomics malls Market Pricing megacities Microeconomics Migration Minimum Payments Mixed-Use Mobility moral hazard mortgage insurance mortgage market Mortgage Rates Mortgages Multi-family Nation Building Non-Traditional Mortgages Office Market office sector pension funds Placed Based Policies Political Risk Price Discovery Private Equity Business public health public policy Public Schools real estate brokerage Real Estate Investment Real Estate Investment Trusts Recession Rental Retail Retirement reverse mortgages Risk Adjustment risk management risk-shifting robotics single family housing Slums Sorting South America Spatial Regions spillover effect stimulus package Sub-Prime Mortgages Sustainability Technology telecommunications trade transportation unemployment United States Urban Urbanization Warehouse welfare work from home