Housing and the Economy

ECON 451

Housing contributes over 16% to U.S. GDP and is the largest asset on the household sector's balance sheet, while the mortgage market constitutes the second largest U.S. credit market, just behind Treasuries and well ahead of corporate debt. In this course, we will study the economic forces driving housing and mortgage markets and its interactions with the wider macro economy. Topics include the drivers of house price dynamics, urbanization, gentrification and housing affordability, an introduction to real estate finance, mortgage design and default, the primary and secondary mortgage market and mortgage securitization, and the causes and consequences of housing driven recessions.


Prerequisite: Economics 201D and (Economics 208D or 204D, either of which can be taken concurrently) or Graduate Standing

Curriculum Codes
  • QS
  • SS
Cross-Listed As
  • FECON 451
Typically Offered
Fall and/or Spring