ABSTRACT
In the previous chapter, we discussed the advantages of econometric techniques in forecasting absorption, rent, and revenue schedules for a specific project, as well as the insights they can provide in guiding entry decisions. But how do we specifically explore future real estate market outlooks using the econometric approach? In this section we demonstrate how this can be done through a series of simple steps by presenting a more elaborate and integrated application of this approach to the Dallas apartment market. In particular, we examine the use of structural/behavioral models in developing conditional forecasts of apartment rent movements, new supply, and apartment stock over a five-year period.
