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Research Seminars & Workshops @ IRES

Professor James D. Shilling
DePaul University

Small Unit Rental Properties Financing Needs


12 December 2011, Monday


3.00 pm – 5.00 pm


RMI Executive Seminar Room
21 Heng Mui Keng Terrace, Level 4

About The Speaker

James D. Shilling is the Michael J. Horne Chair in Real Estate Studies at DePaul University. A prolific scholar, Shilling has produced more than 80 journal articles, studies, books and book chapters. His work has examined real estate investment trusts and the role of real estate in institutional investors' portfolios; mortgage securitization; commercial mortgage default' real estate asset pricing' housing finance and urban economics.

Professor Shilling holds a bachelor's degree from Otterbein College and earned master's and doctoral degrees in economics from Purdue University. He was a member of the University of Wisconsin's faculty between 1990 and 2006 where he was the James A. Graaskamp Professor of Real Estate and Urban Land Economics. In addition, he taught at Cambridge University, where he held the Grosvenor Professor of Real Estate Finance in the Department of Land Economy. He previously lectured at the University of Pennsylvania's Wharton School and Louisiana State University. He has also worked for the Federal Home Loan Bank Board.

Professor Shilling is a past president of the American Real Estate and Urban Economics Association and a past editor of its top-ranked journal Real Estate Economics. He has been honored by a number of prestigious organizations and is a fellow of several, including the Urban Land Institute, Royal Institution of Chartered Surveyors (RICS), Real Estate Research Institute, and the Homer Hoyt Advanced Studies Institute. Professor Shilling is also a Counselors of Real Estate.


The financing needs of small unit rental properties are not well understood. This paper empirically estimates a Jaffee-Stiglitz (1090) disequilibrium model of multifamily mortgage demand and supply. The model is empirically tested in the context of Chicago's multifamily housing market. The fact that we jointly estimate a disequilibrium model of the demand for and supply of multifamily residential mortgages using individual propertylevel data over the period 2005-2010 enables us to examine just how widespread are credit constraints in today's market. The results suggest that noticeable differences exist in the way in which small and large unit rental properties are financed that explain why small unit property investors arc significantly credit constrained relative to large unit property investors.

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