Ken Johnson, Ph.D. 
Associate Dean & Investments Limited Professor | Florida Atlantic University
Boca Raton, FL, UNITED STATES
Ken Johnson is an expert in real estate economics.
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Biography
Ken Johnson is the associate dean and investments limited professor in the College of Business. He holds a Ph.D. from The University of Alabama.
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 (2)
Selected Media Appearances (10)
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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