Consumer behavior applications to real estate education

Abstract

Most real estate study is based on neoclassical economics. Consumers are expected to make decisions that maximize utility and wealth, given price and income constraints. Tastes and preferences are typically inferred from observing outcomes of consumer actions. However, the study of real estate can, and in some ways already does, benefit from inclusion of consumer behavior concepts. Incorporation of these concepts into real estate education would help explain and predict the behavior of real estate decision-makers. This article presents a review of some consumer behavior concepts relevant to real estate and suggests how these can expand real estate study.