Urban Economics is intended as a two-part course. Module 1 is 5258: Urban Economics I and Module 2 is 5259: Urban Economics II.

Cities are the most productive, innovative, and unequal places humans have ever built. They also contain the vast majority of real estate wealth and opportunity. These module courses give students the economic tools to understand why. You will learn why cities exist, what drives their growth, and how to answer questions regarding major urban trends reshaping cities today using the core concepts of economics. How does the market value land and buildings, and what are the implications for development profitability, housing affordability, transit investment, and municipal fiscal health? How are cities adapting since the remote work revolution? Why does the housing crisis persist? How quickly will the market eliminate excess inventory in the office sector and what policy measures are required to speed this process?

The Urban Economics I and II modules move through these questions in two arcs. The first module, 5258, builds foundations of microeconomic reasoning, urban growth and agglomeration, labor markets, land rent, and the spatial models that explain how value is distributed across cities. The second module, 5259, applies those frameworks to the policy challenges planners face most directly: housing markets and affordability, local public finance, transit economics, segregation and neighborhood opportunity, and climate vulnerability.

5258: Urban Economics I assumes no prior economics background. Some sessions involve graphing and basic algebraic reasoning, but no calculus is required. It does assume that you care about cities and are willing to let economic reasoning complicate your intuitions about them. 5259: Urban Economics II assumes knowledge equivalent to that covered in 5258, Module 1.

Students in the GSD Real Estate program are required to take 5258, Module 1. They are also required to take Module 2, 5260: Market Analysis for Real Estate Development and Investment. MRE students may choose to enroll concurrently in 5259: Urban Economics II as an elective. MRE students may seek a waiver of this requirement by successfully passing a waiver examination administered during orientation week.

Students in the GSD Urban Planning program must take both Module 1, 5258: Urban Economics I and Module 2, 5259: Urban Economics II to satisfy their Economics Methods requirement.

Other students may take these modules as electives. Students enrolling in 5259/Module 2 should have taken 5258/Module 1 or have the instructor’s permission to enroll.

Students who previously took 5495: Urban Economics and Market Analysis cannot take 5258 or 5259 for credit.