Ken Johnson, Ph.D.
Associate Dean | Florida Atlantic University
Boca Raton, FL, UNITED STATES
Ken Johnson's research covers housing, housing cycles, and mortgage markets.
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Biography
Ken Johnson, Ph.D., is a well-known scholar with numerous publications on the U.S. housing market, real estate brokerage, transactional real estate, mortgage markets, and real estate investment. His recent articles have appeared in Real Estate Economics, Journal of Real Estate Finance and Economics, Journal of Housing Economics, Journal of Real Estate Research, Journal of Housing Research, The Appraisal Journal, Journal of Real Estate Practice and Education, Journal of Real Estate Portfolio Management, and Journal of Real Estate Law.
Johnson has won several Red Pen Awards for outstanding service and contribution to both the Journal of Real Estate Portfolio Management and Journal of Housing Research. He is a past editor of the Journal of Real Estate Practice and Education and is the current editor of the Journal of Housing Research.
Johnson currently serves as the associate dean of graduate programs in FAU’s College of Business. Additionally, he is a president of the American Real Estate Society. Johnson’s main outreach initiatives are the Beracha, Hardin and Johnson Buy vs Rent Index and the Beracha and Johnson Housing Market Ranking Index. Outside of his academic work, Johnson has more than a decade of applied experience in real estate specializing in the marketing of corporate- and lender-owned properties.
Areas of Expertise (5)
Rental Housing
Real Estate Markets
Homeownership
Real Estate
Real Estate Economics
Education (3)
The University of Alabama: Ph.D. 2001
Auburn University Montgomery: M.B.A. 1993
Auburn University: B.S. 1981
Links (4)
Selected Media Appearances (24)
New study shows rent prices have stabilized across South Florida
WPTV
2023-06-23
Florida Atlantic University professor Dr. Ken Johnson is one of the leading experts on real estate and housing trends. "Our population growth here in Palm Beach County is exceptional," he said. "In Martin and St. Lucie counties, the growth is wildly exceptional.
Here’s how much money you need to afford the average rent in South Florida
Sun Sentinel
2023-06-07
“So if you make less than $112,000 and you live in the average rental place, you are rent burdened,” said Ken Johnson, real estate economist at Florida Atlantic University. “It shows how unaffordable housing is.”
Study finds Florida home prices still overvalued
CBS 12 News
2023-05-31
"Florida is so overvalued almost certainly because of the increased demand to live here combined with a shortage of available housing units,” said Ken H. Johnson, Ph.D., an economist in FAU’s College of Business. “There are just not enough roofs to go around, given our population and Florida’s stature as a prime destination."
Fla. home prices are holding steady, and even rising, as people flock south
The Washington Post
2023-05-24
“Prices in Florida are still going up, which is really shocking because home prices in many parts of the country, particularly out west and along the coasts, are coming down,” said Ken H. Johnson, a real estate economist at Florida Atlantic University in Boca Raton. “Not only are we short of housing units, but we’re seeing extraordinary population growth. Put those two things together, and you get unaffordable housing.”
Florida is losing its status as a middle-class boomer retiree haven as the ultrawealthy and young remote workers take over
Fortune
2023-04-28
Baldwin County, home to some of the country’s lowest median property tax rates, was Alabama’s fastest-growing county in the state from 2010 to 2020, per Census data. Its population increased by 3% in 2022 alone, compared to 1% in South Florida’s Broward County. That’s partly because young professionals who moved to Florida during the pandemic are displacing the retirees who live there, Ken H. Johnson, an economist at Florida Atlantic University, told the Journal.
Priced Out of Florida, More Retirees Are Trying This Sunbelt State on For Size
The Wall Street Journal
2023-04-27
Baldwin County was the fastest-growing county in Alabama between 2010 and 2020, according to the U.S. Census Bureau. In 2022, its population increased by 3%, according to the Census Bureau’s Vintage 2022 Population Estimates, compared with 1% in Broward County, the area around Fort Lauderdale. Much of Baldwin County’s growth comes from older Americans priced out of South Florida, where young professionals are taking their place, said Ken H. Johnson, an economist at Florida Atlantic University in Boca Raton.
Home sweet home? In South Florida, people stay longer in their homes. Here’s why
Miami Herald
2023-04-11
“Usually, the lower the (tenure) number, the more mobile you are and the more economic opportunities exist,” said Ken H. Johnson, a finance professor specializing in real estate at Florida Atlantic University.
A Tale of Two Housing Markets: Prices Fall in the West While the East Booms
The Wall Street Journal
2023-03-27
“Markets are overpriced,” said Ken H. Johnson, a real-estate economist at FAU, but “they’re not as overpriced as the markets a year ago.”
Rent or buy? Florida’s housing costs make decision more complicated
WLFA print
2023-01-26
“It used to be that you didn’t need a big salary to afford a home in the Sunshine State, but those days are over because this has become a market mostly for move-up buyers and empty nesters,” Dr. Ken H. Johnson, a real estate economist at FAU’s College of Business, said. “Florida’s relatively low incomes should make housing affordability a key issue for a long time.”
Floridians can blame vacation homes and 'oppressive' homeowners associations for their high rents, economist says
Business Insider
2023-01-13
Florida's rental market is causing so much pain to everyday workers that it might stifle the state's economic growth. At least that's the takeaway from a new study from Ken Johnson, an economist at Florida Atlantic University's College of Business.
High-End Homes Selling Faster As Wealthy Americans Benefit Most From Stock Market Gains, Says Report
Forbes
2021-06-02
It’s not unusual for higher-end properties to sell faster than those in lower price ranges — the main driver of this phenomenon is the higher percentage of “all cash” transactions in the higher-end housing market, which adds an additional layer of demand for these properties and more potential buyers, Ken H. Johnson, associate dean at the College of Business at Florida Atlantic University and director at American Real Estate Society told Forbes.
Is Dallas-Fort Worth in a home price bubble?
The Dallas Morning News
2021-06-03
“Scores for these areas suggest they are the most exposed to price corrections in the event of a real estate downturn,” Ken H. Johnson, a professor and real estate economist at Florida Atlanta University who is coauthor of the study, said in a statement. “Buyers are bidding up home prices to near peak levels.”
This index shows where you should buy a home, and where you’re better off renting
Bankrate
2021-06-03
On the other hand, it makes sense to buy in Chicago, Cleveland and New York City. And the rent-or-buy calculus is “a virtual toss-up” in Boston, Detroit, Milwaukee, Minneapolis and St. Louis, says index co-author Ken H. Johnson, a real estate economist at Florida Atlantic University.
Mortgage rates pushed higher amid investors’ concerns
The Washington Post
2021-05-20
Ken H. Johnson, a real estate economist at Florida Atlantic University, predicts rates will begin to move up. “Between investment opportunities brought about by a steepening yield curve and the 10-year Treasury market, 30-year mortgages will witness a decline in value and a corresponding increase in yield,” he said. “Thus, long-term mortgage rates should begin to see a series of slow and steady rate increases in the weeks ahead as investors move to alternative risk-adjusted investment opportunities.”
Why the mortgage refinance window could close in the coming months
Bankrate
2020-10-22
The Mortgage Bankers Association’s forecast is a bit more optimistic than others’ outlooks, but not dramatically so. “While I do not think that rates will climb that high that fast, it is realistically possible — and refis will all but cease if rates hit 3.5 percent,” says Ken H. Johnson, a housing economist at Florida Atlantic University.
Fixed mortgage rates tumble to lowest levels in history
The Washington Post
2020-09-10
Ken Johnson, a real estate economist at Florida Atlantic University, expects long-term rates will move up slightly. “The Fed’s open market activities remain consistent, serving to keep long-term mortgage rates near record lows,” Johnson said. “Is this the week, however, that default risk begins to work its way into long-term mortgage rates?”
This Once-Crucial Strategy to Selling Your Home May Be the Worst Thing You Can Do Right Now
Apartment Therapy
2020-08-17
“Vacant properties for sale are forming their own submarket,” says Johnson, a former real estate broker who has researched the market for 25 years. “We should not be surprised to see these homes shown more often than occupied properties, go under contract faster and sell at prices close to market value. Other occupied properties are simply in a separate, nearly non-functioning market at this point.”
Will mortgage rates move up or down in August?
MSN Money
2020-07-31
"While some slight daily variation can be expected, there should be little change in the 30-year fixed mortgage rate in August. The continued demand for 10-year Treasury securities - the anchor for long-term mortgage rates - will serve to keep rates hovering around plus or minus 3 percent," says Ken H. Johnson, real estate economist with Florida Atlantic University in Boca Raton, Florida.
Miami real estate market overvalued nearly 20%, economist says
FOX Business
2020-07-15
Homes values in Miami-Dade County are 19.2 percent higher than their long-term pricing trends, according to Ken H. Johnson, an economist at Florida Atlantic University’s College of Business. Similarly, home values in Palm Beach County were 18.7 percent overpriced and Broward County homes were 17.4 percent overpriced, Johnson found in an analysis of Federal Housing Finance Agency data.
House won't sell? Consider moving out
Chron
2020-05-15
"While some slight daily variation can be expected, there should be little change in the 30-year fixed mortgage rate in August. The continued demand for 10-year Treasury securities - the anchor for long-term mortgage rates - will serve to keep rates hovering around plus or minus 3 percent," says Ken H. Johnson, real estate economist with Florida Atlantic University in Boca Raton, Florida.
Is the U.S. Hurtling Toward Another Housing Crash?
Realtor.com
2020-04-22
Ken Johnson, a real estate economist at Florida Atlantic University in Boca Raton, FL, expects that prices will fall much more along the lines of what many bargain-hunting buyers have been hoping to see. If the economy reopens quickly, prices may decrease only by 5% to 10% nationally, says Johnson. They could be more or less depending on the individual market. But if the crisis and stay-at-home orders go on for another 60 to 90 days, he anticipates prices will plummet up to 50% as there won't be many folks shopping for homes.
These markets could see the sharpest drop in home prices during coronavirus pandemic
CNBC
2020-04-20
“Uncertainty destroys value,” said Ken Johnson an economist at Florida Atlantic University. “The more uncertainty there is, the more a potential buyer will discount the value of the home.”
In president Trump's $4.75T proposed budget, housing programs lose big
Realtor.com
2019-03-11
"Basically, they're reshuffling the cards," says Ken Johnson, a real estate economist at Florida Atlantic University in Boca Raton, FL. “It’s shifting a significant amount of the financial burden from the federal level to the state and local level.”
Why it might be harder to sell your home in 2019
Consumer Affairs
2019-03-11
"Historical evidence indicates that home prices adjust to these directional pressures," said Ken Johnson, a real estate economist at FAU and one of the creators the index.
Selected Articles (3)
A Revision of the American Dream of Homeownership
American Real Estate SocietyKen Johnson et al.
2017 It is well accepted that homeowners, on average, have greater total wealth than renters. However, Beracha and Johnson (2012) show that in a strict “horserace” comparison, renting creates higher wealth than ownership in the majority of cases. In this paper, we revisit Beracha and Johnson's buy versus rent model to investigate factors affecting the wealth outcomes of the buy versus rent decision. Three key findings emerge: (1) the difference in wealth between renting and owning can be most affected by choices within the scope of the individual rather than through the impact of exogenous market variables; (2) households that fail to reinvest buy-rent cash flow differentials accumulate less wealth; and (3) property appreciation plays only a minor role in the results.
Housing Ownership Decision Making in the Framework of Household Portfolio Choice
Journal of Real Eestate ResearchKen Johnson et al.
2017 While it is well documented that homeowners have greater total wealth than renters, it is not clear that homeownership causes this wealth differential. We consider the buy versus rent decision in the framework of household portfolio choice. This allows us to determine whether owning a home increases the utility of households by improving the performance of their portfolio compared with households that rent. We determine that while renting is superior to ownership in isolation, homeownership as a part of the household portfolio often improves wealth creation on a risk-adjusted basis. Our findings suggest significant policy changes that currently favor levered homeownership strategies for households with minimal wealth.
The Short Sale Stigma
The Journal of Real Estate Finance and EconomicsKen Johnson and Kimberly R. Goodwin
2017 Despite a recent upturn, housing prices remain in flux in most cities nationwide. Lenders are still left dealing with a glut of distressed properties. They can choose to foreclose on the property or allow the owner/mortgagor to attempt to sell the property for less than the outstanding balance of the mortgage in a short sale agreement. The best way to clear the market of distressed properties is an important policy question. This is the first study to examine not only the price and time on market effect of being a short sale but also whether the short sale process itself creates a market stigma.
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