This study theoretically discusses and empirically tests how real estate developers profit maximization decisions and changes in banking legislation/regulation have effected the supply of multifamily housing. The real estate developers' profit maximization factors include rental rates, vacancy rates, construction costs and interest rates. However, the study focuses more on how banking legislation/regulation have changed the credit availability for real estate developers. The laws discussed include the Garn-St. Germain Depository Institutions Act of 1982, the Depository Institutions Deregulation and Monetary Control Act of 1980 and the Financial Institutions Reform, Recovery and Enforcement Act of 1989. In addition various regulatory changes are presented. A time series empirical model is used to test the hypothesis. The study was conducted on the national level using United States quarterly data for the years between 1975-1993. The empirical results were not as significant as hoped. Many of the variables did not have expected signs and the majority of the variables were not significant. Even though the majority of the variables did not prove significant, other similar studies that are referred to have obtained significant results. In addition, possible reasons why insignificant results were obtained are stated. This section of the study is important for those who are considering doing further research on related topics so that similar results can be avoided.


Burnell, James


Urban Studies

Publication Date


Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

Available for download on Thursday, January 01, 2150

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© Copyright 1993 Brian J. Galbraith