Rohan Ganduri

Assistant Professor of Finance Emory University, Goizueta Business School

  • Atlanta GA

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Emory University, Goizueta Business School

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Biography

Rohan Ganduri joined Goizueta Business School in 2016 after completed his Ph.D. in Finance at Georgia Tech's Scheller College of Business. Ganduri's research interests include banking, credit risk, real estate, household finance, and corporate finance. His research has been published in leading academic journals such as the Journal of Financial Economics and the Review of Finance. Ganduri currently teaches a course on Mergers & Acquisitions.

Education

Georgia Institute of Technology

PhD

Finance

2016

Georgia Institute of Technology

MS

Quantitative & Computational Finance

2010

Indian Institute of Technology (IIT) Bombay

BS

Technology Engineering Physics

2006

Areas of Expertise

Banking
Credit Risk
Real Estate
Household Finance
Corporate Finance

Research Spotlight

2 min

It Works on TV - Do Property Rehabs Drive Up Prices in Surrounding Neighborhoods?

When a house is distressed, the negative impact tends to ricochet around its surrounding neighborhood. Distressed homes (e.g. foreclosures) can significantly bring down the value of other homes in the area, as these properties are often poorly maintained and then typically sold at discounted prices In the past, and particularly in the wake of the 2008 subprime crisis, federal and local governments sought to mitigate this negative effect by incentivizing the rehabilitation of distressed properties through programs like the Neighborhood Stabilization Program (NSP). Until now, there has been some skepticism as to whether or not these kinds of initiatives actually work. New research by Goizueta Foundation Term Associate Professor of Finance Gonzalo Maturana and Goizueta’s Assistant Professor of Finance Rohan Ganduri might change the narrative definitively. They have analyzed new data that shows that rehabilitation projects not only help to stabilize housing prices in affected neighborhoods but can also actually increase the value of neighboring properties by as much as four percentage points. Using highly robust, non-parametric statistical analysis methods, Maturana and Ganduri parsed more than 10 years of information on rehabilitated property transactions and real estate prices across the United States. The effect of renovating dilapidated or derelict houses in these areas pushes prices up between 2.3 and four percentage points in their surrounding blocks, they find. And that’s not all. While the average amount spent by authorities on these renovations comes in at roughly $36,000, their study estimates a societal welfare gain of $134,000 per rehabilitated property—almost four times the cost of the rehabilitation. These insights should provide interesting food for thought for the U.S. Congress and local governments, Maturana notes. After the housing crash in 2008, Congress allocated $6.9 billion in funding to the NSP to help stabilize communities affected by high vacancy and foreclosure rates, but the Department of Housing and Urban Development didn’t find any positive impact on local housing markets at the time. “Our findings suggest that rehabilitation projects do drive a positive uptick in prices that can help revitalize distressed neighborhoods,” says Maturana. “And they provide very timely support for policy interventions, such as President Biden’s infrastructure spending program which proposes an allocation of $20 billion to rehabilitate 500,000 single-family homes in low-income neighborhoods in the United States.” With the current economy facing some uncertain times this is a topic that is important for everyone.  And if you're a reporter looking to know more then let us help. Gonzalo Maturana is an associate professor of finance at the Goizueta Business School. He is an expert in the areas of corporate, household and real estate finance. Rohan Ganduri's research interests include banking, credit risk, real estate, household finance, and corporate finance. Both Gonzalo and Rohan are available to speak to media regarding this topic – simply click on either icon now to arrange an interview today.

Rohan GanduriGonzalo Maturana

In the News

Older Americans increasingly struggling to save for retirement

CBS News  online

2023-02-27

For millions of Americans, saving enough for retirement is one of their biggest challenges, especially as recent Wall Street losses have led to shrinking 401(k) plans.

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Brian Kemp owes more than $800,000 in insider loans to bank he helped start

FOX5  online

2018-10-23

Ganduri says bank loans to insiders, like Kemp, are governed by Federal Reserve laws. He says some bankers like making these loans to wealthy board members and shareholders since they're good credit risks and wouldn't want to harm the bank. But others worry about insider loans for one main reason.

“There are potential conflicts of interests. The insiders can treat these loans as a private piggy bank,” says Ganduri.

Ganduri says the Federal reserve sets strict requirements that loans be on the same terms a bank would give any other borrower. In short: no special terms or advantages.

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Answers

Apartment Prices on the Decline 
Rohan Ganduri

For the first time in five years, apartment prices have fallen for the past six months. Research from Apartment List shows the median rent in January was 3.4% less than the cost of the same apartment in August. The reasons include recent layoffs, rent prices forcing some to live with family and finally, the biggest delivery of new supply in over twenty years. Rohan Ganduri, assistant professor of Finance at Goizueta Business School, explains why now is the time to negotiate renewals and while the decline is nice for renters, overall prices are still much higher than they were prior to the pandemic.