Please wait while the transcript is being prepared...
0:00
Welcome again to Real
Estate Economics.
This is talk number
5 in our series
and the second talk on
real estate markets.
I'm John McDonald,
Emeritus Professor of Economics
at the University
of Illinois Chicago
and Emeritus Professor of
Real Estate at
Roosevelt University.
Today's talk is on
types of real estate.
0:32
There are many different
types of real estate
and these include
housing, of course,
office space,
industrial real estate,
retailing, hotels,
health care, hospitals,
that sort of thing,
and public buildings.
Public buildings are not
part of the private market
so we will not be focusing
on that although, of course,
it does include a lot
of things, schools,
firehouses, police
stations, city hall, etc.
In any event, let's
go on to housing.
1:10
There are two types of housing
in the private market.
There's owner-occupied
housing that we've been
actually discussing the legal
aspects of here so far.
These are usually
single-family buildings,
but they can also be multi-family
apartment buildings,
condominiums that are
individually owned.
Buyers usually obtain a loan
to purchase
single-family housing.
Rental housing in
the private market.
In these cases,
tenants sign a lease for
a certain term of time
to occupy the
apartment or a house.
Often, these are
high-rise buildings or
multi-unit buildings.
They can have a very
long lease but often
they're pretty short and
the rent can change at
the end of the lease.
Then finally, there
is public housing,
or in the UK called
council housing.
This is housing built and
operated by the government
and tenants typically pay
lower rent than market rent.
They can be small
or large buildings.
That's just the
basics of housing.
