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)
Real Estate Markets
Real Estate Economics
The University of Alabama: Ph.D. 2001
Auburn University Montgomery: M.B.A. 1993
Auburn University: B.S. 1981
Selected Media Appearances (3)
Demand for home ownership is falling in major markets, index shows
Florida International University News
“Historical evidence indicates that home prices adjust to these directional pressures,” said Ken Johnson, associate dean of graduate programs at Florida Atlantic University’s College of Business.
In president Trump's $4.75T proposed budget, housing programs lose big
"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
"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)
Ken 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.
Ken 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.
Ken 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.