Increasing Institutional Asset Owner Capital into Mixed Income Housing in the US

Authors

Frederick WhiteFollow

Document Type

Dissertation

Degree

Doctor of Business Administration

Major/Program

<--Please Select Department-->

First Advisor's Name

George Marakas

First Advisor's Committee Title

Committee chair

Second Advisor's Name

William Hardin

Second Advisor's Committee Title

Committee member

Third Advisor's Name

Robert Rodriguez

Third Advisor's Committee Title

Committee member

Fourth Advisor's Name

Hemang Subraman

Fourth Advisor's Committee Title

Committee member

Fifth Advisor's Name

Arijit Sengupta

Fifth Advisor's Committee Title

Committee member

Keywords

Multiple Regression Analysis, Modern Portfolio Theory, Pensions, Life Insurance Company, Multifamily, Housing Policy, Real Estate Capital Markets, Environmental, Social, Governance (ESG)

Date of Defense

6-7-2022

Abstract

In this Dissertation manuscript, I present a framework that assesses certain characteristics considered by an Institutional Asset Owner (IAO) when considering allocating capital into Mixed-Income Rental Multifamily (MIH) Housing in the United States (US). An Institutional Asset Owner (IAO) firm, as defined by this manuscript include Life Insurance Companies, Pension Funds, Endowments, Registered Investment Advisors, and Real Estate Fund Operators. US Institutional Asset Owners (IAOs) account for trillions in investable cash that must be deployed on an annual basis into various investment opportunities including stocks, bonds, real estate, and other asset classes for the benefit of its participants and clients. This level of investable capital available annually can make significant inroads in the production and preservation of affordable housing in the US while simultaneously helping municipalities reduce rent burdens for their most vulnerable residents with the addition of more affordable and essential housing. This study will benefit US Institutional Asset Owners (IAOs), nonprofits, municipalities, developers, intermediaries, and residents. For decades, an Institutional Asset Owner (IAO) looking to diversify its vast investment portfolio has purchased multifamily properties in the United States. Utilizing private-sector research data and a survey, this study highlights perceptions, intentions, and willingness of an Institutional Asset Owner (IAO) to invest in Mixed-Income Housing (MIH).

For the main study, we tested the research model (Figure 2) via two separate survey instruments that included a total of 59 completed survey responses. The results for both studies indicated a conclusive effect for the independent variables on the dependent variable in the research model (Figure 2) including significant support for the following independent variables: risk-adjusted returns, investment vehicles, geographic diversification, policy, and incentives. The survey results revealed that Environmental Social Governance (ESG) moderates the relationships amongst risk-adjusted returns, investment vehicles, geographic diversification, investment scale, and the dependent variable, Institutional Asset Owner capital into Mixed-Income Housing (IAOMIH). In addition, the survey results revealed that Corporate Social Responsibility (CSR) strongly moderates the relationship between incentives and the dependent variable, Institutional Asset Owner capital into Mixed-Income Housing (IAOMIH).

Identifier

FIDC010725

ORCID

https://orcid.org/0000-0003-0428-6598

Creative Commons License

This work is licensed under a Creative Commons Attribution-No Derivative Works 4.0 License.

Recommended Citation

White, Frederick, "Increasing Institutional Asset Owner Capital into Mixed Income Housing in the US" (2022). FIU Electronic Theses and Dissertations. 5072.
https://digitalcommons.fiu.edu/etd/5072