A Columbia Business School Professor’s Quest to Find Efficiency in Affordable Housing
Working in the heart of New York City, just blocks away from some of the most valuable real estate in world, is a constant reminder of the problems with affordable housing. Stijn Van Nieuwerburgh, the Earle W. Kazis and Benjamin Schore Professor of Real Estate at Columbia Business School, address the issue first hand in a recent study, asking whether affordable housing can become more efficiency in an increasingly urbanized world.
“Can we improve the efficiency of the affordable housing system?” Van Nieuwerburgh asks in his latest study, “Affordable Housing and City Welfare.” Van Nieuwerburgh co-authored the study alongside Jack Favilukis of the Sauder School of Business at the University of British Columbia and Pierre Mabille of the Stern School of Business at New York University, which pivots the conversation away from a strictly cost conversation to one of social insurance.
“A lot of the previous models that have thought about these questions, haven’t really modeled risk, risk aversion, and insurance against risk,” Van Nieuwerburgh says. “That is what’s new here; it’s a finance perspective on the world.”
“Van Nieuwerburgh notes that people first sought out rent controlled or rent stabilized units when it was appropriate for their economic situation; but then over time, their careers progressed and they began to earned more. The research demonstrates that these very same renters tend to stay in the same unit when they can afford a market-rate unit, effectively taking the place of someone who earns less.”
A proposition from Van Nieuwerburgh in the study is that of a mean’s test, requiring applicants for an affordable housing lottery to earn within 30 percent of the proposed median income. Which, if successful, would allow needier applicants to earn higher priority, rather than keep tenants in housing built for people in lower income levels.
“That means that really needy people are going to get these units,” according to Van Nieuwereburgh.
“We can add everybody up, and we can see whether society is better off or not under this new policy,” he says. “The reason we’re better much off with this more efficient housing system is because poor people now get access to affordable housing units that they didn’t before.”
A primary difficulty with current proposals and changing rent laws, Van Nieuwereburgh argues, is that developers will have less economic incentive to build affordable housing if the demand increases while the cost of land in cities like New York continues to climb. His model also entails avoiding tax increases on wealthier residents, arguing that it disincentivizes upper-class earners and may not be more beneficial than voucher programs. However, despite the fiscally conservative framework, the study also advocates for potential solutions like “upzoning,” which can create more density in areas with tighter development laws.
You can read more about the affordable housing study, which was inspired by Mathew Desmond’s book Evicted, here.
Top Southwest Real Estate MBA Programs
A career in real estate is not a common choice for MBA graduates. In fact, a relatively small number of MBA students pursue careers in real estate, but that makes choosing the right business school all the more critical.
Real estate is a highly specialized field, so it’s essential that MBA students have access to the appropriate certifications, majors, centers, professors, and courses. If you’re interested in a career selling, buying, managing, developing, or speculating in real estate, you need to head to a premier MBA program that will help guide you and make the connections required to fuel your success.
Top Real Estate MBAs: Northwest
The Pacific Northwest is home to some of the fastest-growing cities in the country. According to the U.S. Census Bureau, Northwest real estate is rapidly expanding, with population increases (16.5-19.8 percent) in the these five metros:
- Greeley, CO
- George, UT
- Bend-Redmond, OR
- Provo-Orem, UT
- Boise, ID
While the Northwest is home to relatively few of the top-ranked MBA programs, the region makes up for a lack of quantity with quality—and specificity. Unbeknownst to many prospective b-schoolers pining for a tony school on the Eastern Seaboard, the American Northwest boasts a surprising number of excellent Real Estate-focused degrees.
Let’s take a closer look at the premiere options in the region:
The Top Northwest Real Estate MBA Programs
Located in Boulder, UC’s Leeds School of Business offers a traditional two-year full-time MBA with a real estate concentration. Noting its multi-disciplinary approach and the support of the CU Real Estate Center, the Leeds MBA real estate concentration offers a curriculum organized by industry focus, including the following courses:
- Sustainability & Real Estate
- Real Estate Finance
- Entrepreneurial Real Estate
In addition, the program offers a combination of “networking events, personal mentoring, conferences and competitions” to aid their MBA students in building their real estate industry careers. Annual tuition for in-state residents is $35,782, while out-of-state students can expect to pay $66,600.
Founded in 1908, the University of Denver Daniels College of Business organizes its MBA curriculum around a series of challenges that run concurrently with classes to provide students with a continually applied learning experience.
Students design a growth plan to monitor themselves so they can optimize their education and performance. Daniels offers a two-year, full-time MBA with a concentration in “Real Estate and the Built Environment.” With a customizable curriculum, annual tuition is $90,400.
Portland State University offers a Master’s of Real Estate Development that functions as an interdisciplinary program with PSU’s School of Business Administration, the School of Urban Studies and Planning, and the Center for Real Estate.
With 12-month full-time and 24-month part-time options, the curriculum includes courses in real estate fundamentals, a real-world capstone development project, fast tracks to professional licenses, and exposure to examples of sustainable urban development.
Annual tuition for in-state students is $37,800 full-time and $39,162 for out-of-state students, with residents of certain western states potentially eligible for tuition through WICHE and WRGP. Non-resident tuition is $45,555 full-time and $46,917 part-time for out-of-state students.
Nestled in the foothills of the Wasatch Mountain Range just outside of Salt Lake City, the University of Utah’s David Eccles School of Business offers a Master of Real Estate Development that emphasizes hands-on learning informed by and contributing to the research through the Ivory-Boyer Real Estate Center.
Students also have access to competitions such as the Utah Real Estate Challenge, weekly real estate labs, and professional mentorships. Study abroad opportunities and flexible, work-compatible schedules are also available. Annual tuition for Utah residents is $43,200 full-time and while non-residents can expect to pay $71,900.
In the University of Washington Foster School of Business full-time MBA program, students can take up to 16 credits worth of courses that are “non-MBA” coursework, of which includes real estate courses via the university’s College of Built Environments.
While some non-MBA courses at UW require pre-approval, the real estate course options do not require a a Non-MBA Class Request form. The total cost (tuition and fees)of the full-time program at UW’s Foster School of Business is currently $66,654 for in-state residents, and $96,666 for out-of-state residents. Prices are subject to change annually.
Best Real Estate MBAs in the Northeast
While a career in real estate is not one of the most popular options for MBA graduates, it is a solid choice. The U.S. real estate industry pulls in over $166 billion in revenue each year, and markets in India, China, and other emerging economies are poised to expand. So, the question is, if you’re looking to go to school in the Northeast, where are the best MBA programs to help build a career in the industry? We’ve highlighted five of our favorite Northeast real estate programs below.
The Best Northeast Real Estate MBA Programs
The NYU Stern School of Business offers full-time MBA students a chance to specialize in real estate. According to the school, it “provides rigorous training in the development, investment, and financing of real estate projects.” Students who choose the specializing are taught to think strategically about real estate in primary and secondary markets including the legal, taxation, and regulatory environments they’ll encounter.
Real estate MBA curriculum includes classes such as:
- Real Estate Development and Entrepreneurship
- Real Estate Transactions
- Real Estate Investment Strategies
- Urban Systems
Real Estate Outside the Classroom:
- Center of Real Estate Finance: Established in 2012, the Center is dedicated to expanding the School’s course offerings and career services in real estate. It’s open to both MBAs and undergraduates alike and offers monthly events, research and more.
- MBA Real Estate Club: The Stern Real Estate Club (SREC) offers guest lectures, panel discussions, mixers, site visits, and case competitions for MBA students interested in expanding their real estate experience and insight.
The Georgetown University McDonough School of Business also offers a specialization in real estate for MBA students, which can include an intensive learning experience (ILE) in real estate development. ILEs are elective courses that offer client-centered work and experiential learning opportunity off campus in a concentrated time format.
MBA students interested in real estate can take courses in:
- Real Estate Private/Public Equity
- Real Estate Private/Public Debt
- Negotiations
- Fixed Income Analysis
Real Estate Outside the Classroom
- Steer Center for Global Real Estate: The Steers Center “offers students unparalleled access to the real estate industry at a global level.” Students gain hands-on experience with the D.C. real estate market through a range of activities from alumni mentoring to internships, job contacts, and more.
- Real Estate Industry Career Coach: Georgetown offers a career coach with specific industry knowledge and relationships in real estate. This career coach will help MBA students with their resume, cover letter, mock interviews, and networking strategy.
At The Wharton School, MBA students can major in real estate. This major includes two required courses in real estate investment and real estate development. The goal of the major is to “prepare students to be leaders in the real estate industry” and provide the necessary quantitative and qualitative tools to be successful. Offered since 1985, the major has grown in scope and size over the years.
Additional courses in real estate that Wharton MBA students can enjoy:
- Global Real Estate: Risk, Politics, and Culture
- Urban Real Estate Economics
- Real Estate Law
- Real Estate Entrepreneurship
Real Estate Outside the Classroom
- Samuel Zell & Robert Lurie Real Estate Center: Each year, the Real Estate Center sponsors conferences, seminars, and special programs for students and faculty interested in real estate. Established in 1983, it promotes excellence in real estate education and research.
- Wharton Real Estate Club: The Wharton Real Estate Club provides career development, mentorship, and networking opportunities for students at Wharton. Of particular note are the treks and tours that allow students to meet prospective employers, visit project sites, and gain first-hand experience.
The Columbia Business School’s MBA Real Estate program “provides students an unparalleled opportunity to expand their entrepreneurial skills while focusing on real estate finance and investment management.”
The program encourages students to view real estate as both a physical and financial product by emphasizing a blend of theory and practice. Throughout the curriculum, students work on 65-plus proprietary real estate business cases taught by real estate professionals.
The real estate curriculum differs every term, but it includes courses such as:
- Real Estate Finance
- Real Estate Transactions
- Real Estate Portfolio Management
- Social Impact Real Estate Investing and Development
Real Estate Outside the Classroom
- Paul Milstein Center for Real Estate: The Center for Real Estate integrates the theoretical and practical knowledge of real estate. It offers regularly hosted events including panel discussions, conferences, alumni career breakfasts, and symposiums
- Fellowships & Scholarships: Uniquely, Columbia offers multiple fellowships and scholarships for MBA students interested in real estate. Awards can be as much as $50,000 a year and are both merit-based and need-based.
Full-time MBA students at the Rutgers Business School can customize their education with a real estate concentration. In total, students who choose this path will take six courses in real estate including strategic management. They can also pursue a dual concentration in finance and real estate, which requires them to take a course in aggregate economic analysis.
Other potential real estate courses that MBA students can take, include:
- Real Estate Finance
- Real Estate Capital Markets
- Market Analysis and Valuation
- Property Management and Real Estate Investment Management
Real Estate Outside the Classroom
- Center for Real Estate: The Rutgers Center for Real Estate is a dynamic hub for students, academics, and professionals. It aims to educate, research, and exchange ideas on real estate. Currently, more than 95 real estate professionals lend their influence to the Center.
- Rutgers Real Estate Club: The Club is a “place for people interested in real estate, internships, and everything business. It brings together experienced speakers for a variety of events and opportunities.
New MBA Jobs Munchies
According to the New Zealand Institute for Plant & Food research, the global food and beverage industry is growing at around 5 percent annually, with the global expenditure on products by consumers expected to reach $20 trillion by 2030. Key trends for innovation and product development are in health, convenience, naturalism and sustainability. Where there is a need for innovation in an industry, there are new MBA jobs. Continue reading…
The Northeast Region’s Top Accelerated MBAs
The numerous advantages of an accelerated MBA start with one that’s particularly appealing–low cost. And while accelerated programs are more affordable, they are by no means less valuable or challenging than two year programs. In fact, they can be quite intensive in that they allow students to leverage their undergrad business education directly to MBA studies by covering core requirements.
