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Types of real estate

Published on August 29, 2024   11 min

A selection of talks on Finance, Accounting & Economics

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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.

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