Advanced Search
DSpace@MIT

Apartment volatility determinants across the United States markets

Research and Teaching Output of the MIT Community

Planned maintenance alert - Monday, April 21: DSpace@MIT will undergo maintenance activities that will affect service availability and access to file content. While the service interruptions should be brief, access to file content may take longer to restore. Status updates will be posted to http://3down.mit.edu/.

Show simple item record

dc.contributor.advisor Williams Wheaton. en_US
dc.contributor.author Luo, Mai, S.M. Massachusetts Institute of Technology en_US
dc.contributor.other Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. en_US
dc.coverage.spatial n-us--- en_US
dc.date.accessioned 2011-08-16T15:26:37Z
dc.date.available 2011-08-16T15:26:37Z
dc.date.copyright 2011 en_US
dc.date.issued 2011 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/65184
dc.description Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2011. en_US
dc.description This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. en_US
dc.description Cataloged from student submitted PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 49-51). en_US
dc.description.abstract Much research has been done to examine the volatilities of return on public and private real estate investments. However, little is known about market volatility in real estate in general and in apartment real estate in particular. This paper uses 21-year quarterly data across 46 markets in the United States to analyze the market volatility behavior of apartment real estate markets. In addition to summarizing the general profile of apartment volatilities such as vacancy change and revenue change, this paper conducts a significant amount of cross-sectional time-series regression analysis to test the determinants of such volatilities. It is found that demand volatilities dominate the volatility of vacancy change of apartment markets. As for the revenue change volatility, it is almost equally determined by occupancy change and rent change volatilities. Furthermore, the paper finds that big markets, fast economic growth, and a decreased concentration magnitude tend to reduce vacancy and revenue volatilities. Regulations on redevelopment tend to increase the volatilities of revenue change and rent change. The supply elasticities are proved to increase the volatility of vacancy change and revenue change, but to decrease the volatilities of demand and rent change. This paper provides a better understanding of apartment market volatilities, and can be used to hedge risk by improving apartment diversification strategies for both private equity real estate firms and public real estate investment trusts (REITs). en_US
dc.description.statementofresponsibility by Mai Luo. en_US
dc.format.extent 60 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582 en_US
dc.subject Center for Real Estate. Program in Real Estate Development. en_US
dc.title Apartment volatility determinants across the United States markets en_US
dc.type Thesis en_US
dc.description.degree S.M.in Real Estate Development en_US
dc.contributor.department Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. en_US
dc.identifier.oclc 746357307 en_US


Files in this item

Name Size Format Description
746357307.pdf 4.256Mb PDF Preview, non-printable (open to all)
746357307-MIT.pdf 4.539Mb PDF Full printable version (MIT only)

This item appears in the following Collection(s)

Show simple item record

MIT-Mirage