Real Estate Finance and Its Vulnerability to Crisis

Explore the complex world of real estate finance and its susceptibility to economic crises in this comprehensive lecture from Yale University's Financial Markets course. Delve into the significance of real estate as a major asset class for individual and institutional investors, examining the psychological and economic factors that influence investment decisions. Trace the evolution of commercial real estate assets from direct participation programs to real estate investment trusts (REITs), and learn about the development of mortgages and government regulatory measures. Gain insights into mortgage mathematics and the roles of Fannie Mae and Freddie Mac. Analyze the dynamics of housing booms by comparing markets like Los Angeles and Milwaukee, and investigate both domestic and international real estate trends. Understand how real estate investment patterns correlate with overall economic health and financial market conditions, and explore the speculative nature of real estate that can contribute to financial and economic crises.