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The Journal of Real Estate Finance and Economics OnlineFirst articles


Willingness to Pay for Attributes of Location Efficiency

This paper examines U.S. residential consumer willingness to pay for location efficiency, a normative advancement of new urbanism. Drawing on a national sample of multi-family housing data joined to measures of urban form and spatial structure …

Jeremy Gabe, Spenser Robinson, Andrew Sanderford


Price and Liquidity Dynamics for Single and Multi-Family Homes during Housing Market Shocks

Real estate research has primarily focused on examining aggregate shocks and dynamics to describe housing market trends; however, heterogeneity across housing types has been largely ignored especially on an intra-city level. In this paper, we …

Nicholas B. Irwin, Mitchell R. Livy

15.05.2021 Open Access

Preferences of Institutional Investors in Commercial Real Estate

In this paper we analyze market segmentation by firm size in the commercial real estate transaction process. Using novel micro-level data, we look at the probability distribution of investors acquiring a specific bundle of real estate …

Dragana Cvijanović, Stanimira Milcheva, Alex van de Minne


Reducing Strategic Forbearance under the CARES Act: an Experimental Approach Utilizing Recourse Attestation

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in response to both the global pandemic’s immediate negative and expected long-lasting impacts on the economy. Under the Act, mortgage borrowers are allowed to cease making …

Jackson T. Anderson, David M. Harrison, Michael J. Seiler


Why Disclose Less Information? Toward Resolving a Disclosure Puzzle in the Housing Market

We examine the role of information disclosure in the housing market, offering both theory and evidence for observed variability in disclosure strategies among property listings in a multiple listing service (MLS). Our initial empirical findings …

Xun Bian, Justin C. Contat, Bennie D. Waller, Scott A. Wentland

11.05.2021 Open Access

Buildings’ Energy Efficiency and the Probability of Mortgage Default: The Dutch Case

We investigate the relationship between building energy efficiency and the probability of mortgage default. To this end, we construct a novel panel data set by combining Dutch loan-level mortgage information with provisional building energy …

Monica Billio, Michele Costola, Loriana Pelizzon, Max Riedel


Risk Retention Rules and the Issuance of Commercial Mortgage Backed Securities

We study the impact of the risk retention rule - requiring 5% of underlying credit risk for commercial mortgage backed securities - on commercial real estate markets. Since the primary objective of this rule is for the deal sponsors to have skin …

Sumit Agarwal, Brent W. Ambrose, Yildiray Yildirim, Jian Zhang

30.04.2021 Open Access

Volatility and the Cross-Section of Real Estate Equity Returns during Covid-19

This paper uses the global systemic shock associated with the outbreak of the novel coronavirus Covid-19 to assess the risk-return relationship in the cross-section of real estate equities in the US and in selected Asian countries. I construct …

Stanimira Milcheva


Why Do Buyers Pay Different Prices for Comparable Products? A Structural Approach on the Housing Market

We focus on the housing market and examine why nonlocal home buyers pay 12% more for houses than local home buyers. We established a database on the residential housing market for Lafayette and West Lafayette, Indiana, that includes house …

Ralph B. Siebert, Michael J. Seiler

31.03.2021 Open Access

Ignoring Spatial and Spatiotemporal Dependence in the Disturbances Can Make Black Swans Appear Grey

Automated valuation models (AVMs) are widely used by financial institutions to estimate the property value for a residential mortgage. The distribution of pricing errors obtained from AVMs generally show fat tails (Pender 2016; Demiroglu and James …

R. Kelley Pace, Raffaella Calabrese

30.03.2021 | Original Research

Narrative Investment-Risk Disclosure & REIT Investment

We study narrative investment-risk disclosure, applying computational linguistic analysis to the qualitative discussions of risk throughout 10-K filings. Our sample covers the real estate investment trust (REIT) sector, where firms rely heavily on …

Dongshin Kim, Dongkuk Lim, Jonathan A. Wiley

24.03.2021 Open Access

Asymmetric Patterns of Demand-Supply Mismatch in Real Estate

As expectations change, we may observe asymmetry in responses of economic agents over various phases of the economic cycles. In this paper, we analyze both demand and supply side information to understand the dynamics of price determination in the …

Gianluca Marcato, Anupam Nanda


Operating Lease as Alternative Financing for REITs: a Viable Strategy or a Sign of Trouble?

Extant REIT research largely overlooks operating leases as an alternative source of financing. In this study, we hand-collect lease information of 334 unique REITs over the period of 1993 to 2018, and we document that an increasing number of REITs …

Elizabeth Devos, Erik Devos, He Li, Desmond Tsang


Network Formation and Effects: Observations from U.S. Commercial Real Estate Markets

We explore how trading networks among commercial real estate brokerage firms are formed, and the effects of network structure on centrality, assortativity and power in the six largest commercial real estate markets in the United State. Fitting the …

David Scofield, Jia Xie


Tenant Concentration in REITs

To the extent that a property portfolio is dependent on a small number of tenants for a large proportion of rental revenue, the portfolio has a concentrated tenant base. This article investigates the impact of tenant concentration on property …

Ryan G. Chacon

24.03.2021 | Correction

Correction to: Sex and Selling: Agent Gender and Bargaining Power in the Resale Housing Market

A Correction to this paper has been published: …

Duong T. Pham, Geoffrey K. Turnbull, Bennie D. Waller


Local Economy, Asset Location and REIT Firm Growth

This paper empirically examines the extent to which and how local economic growth and asset location affect firm growth based on a sample of US equity real estate investment trusts (REITs) from 2001 to 2016. Using the GDP growth rate by MSA and …

Zifeng Feng, Zhonghua Wu


The Cost of Financial Flexibility: Information Opacity, Agency Conflicts and REIT at-the-Market (ATM) Equity Offerings

Using a sample of publicly traded U.S. REITs, we examine the impact of at-the-market (ATM) equity offerings on participating firms’ cost of capital. While ATM programs can improve a firm’s financial flexibility, capital market access, and market …

George D. Cashman, David M. Harrison, Shelly Howton, Benjamin Scheick


Revisiting the Autocorrelation of Real Estate Returns

Real estate returns often show highly positive autocorrelation. However, with the Hong Kong housing market data, we found two anomalies. For one, the autocorrelations of the district-level submarket returns are mostly negative. For the other …

Kuang Kuang Deng, Siu Kei Wong


Street Name Fluency and Housing Prices

This paper examines whether and how street name fluency affects housing prices using a rich sample of housing transactions in Sydney, Australia. We find street names with longer words are preferred, i.e., homes on street names with more letters …

Sumit Agarwal, Maggie R. Hu, Adrian D. Lee