Author: C. Peter Rydell
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 84
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Book Description
Analyzes the price elasticity of the supply of rental housing services, defined as the percentage increase in supply associated with a one percent increase in price. The purpose of the report is to predict the price changes associated with supply responses to shifts in demand. Section II analyzes each component of supply response separately. It presents price elasticities for the repair, inventory, and occupancy responses to demand shifts. It reviews the literature on all three and offers new estimates for the second and third (the estimates are based on the analysis of Annual Housing Survey data from the U.S. Census Bureau reported in Appendix B). Section III combines the three individual supply elasticities into a composite elasticity. It accomplishes the integration using a model of housing-market responses to demand shifts presented in Appendix C. The model was built during the Housing Assistance Supply Experiment to explain the housing market's response to demand shifts caused by an experimental housing allowance program.
Author: Rob Nijskens
Publisher: Springer
ISBN: 3030116743
Category : Business & Economics
Languages : en
Pages : 220
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Book Description
This open access book discusses booming housing markets in cities around the globe, and the resulting challenges for policymakers and central banks. Cities are booming everywhere, leading to a growing demand for urban housing. In many cities this demand is out-pacing supply, which causes house prices to soar and increases the pressure on rental markets. These developments are posing major challenges for policymakers, central banks and other authorities responsible for ensuring financial stability, and economic well-being in general.This volume collects views from high-level policymakers and researchers, providing essential insights into these challenges, their impact on society, the economy and financial stability, and possible policy responses. The respective chapters address issues such as the popularity of cities, the question of a credit-fueled housing bubble, the role of housing supply frictions and potential policy solutions. Given its scope, the book offers a revealing read and valuable guide for everyone involved in practical policymaking for housing markets, mortgage credit and financial stability.
Author: Rand Corporation
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
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Book Description
Author: William C. Wheaton
Publisher:
ISBN:
Category : Housing
Languages : en
Pages : 41
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Book Description
MSA-level estimates of a housing supply schedule must offer a solution to the twin problems of simultaneity and stationarity that plague the time series data for local housing prices and stock. An Error Correction Model (ECM) is shown to provide a solution to stationarity, but not simultaneity. A Vector Error Correction Model (VECM) is suggested to handle both the stationarity and endogeneity problems. Such models also nicely distinguish between (very) long run elasticities and a variety of short term impacts. We estimate these models separately for 68 US MSA using quarterly data on housing prices and residential construction permits since 1980. The results provide long run supply elasticity estimates for each market that are better bounded than previous panel-based attempts and also correspond with much conventional thought. We find these elasticities are well explained by geographic and regulatory barriers, and that inelastic markets exhibit greater price volatility over the last two decades. Using the models' short run dynamics we make several forecasts of prices over the next decade. In current dollars, some MSA will still not recover to recent peak (2007) house price levels by 2022, while others should exceed it by as much as 70%.
Author: Mr.Martin Cihak
Publisher: International Monetary Fund
ISBN: 1451871058
Category : Business & Economics
Languages : en
Pages : 34
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Book Description
We examine the interest rate elasticity of housing prices, advancingthe empirical literature in two directions. First, we take a commonly used cross-country panel dataset and evaluate the housing price equation using a consistent estimator in the presence of endogenous explanatory variables and a lagged dependent variable. Second, we carry-out a novel analysis of determinants of residential housing prices in a cross-section of countries. Our results show that the short-term interest rate, and hence monetary policy, has a sizable impact on residential housing prices.
Author: James R. Follain
Publisher:
ISBN:
Category : Housing
Languages : en
Pages : 16
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Book Description
Author: Dixie Marie Blackley
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The long-run price elasticity for alternative specifications of new housing supply is estimated using U.S. annual data for 1950 through 1994. The basic model expresses residential construction as a linear function of new housing price and the prices of construction inputs. Long-run elasticities range from 1.6 to 3.7, suggesting that new housing supply is price elastic. Residential construction responds to both the real interest and expected inflation rates, but other construction cost variables perform poorly. However, the results are sensitive to the time-series processes underlying the variables. A modified model that expresses residential construction as a function of changes in input prices, rather than their levels, produces a long- run elasticity of about 0.8 and a significant inverse relationship between new housing supply and the construction wage rate.
Author: Ms.Nan Geng
Publisher: International Monetary Fund
ISBN: 1484367626
Category : Business & Economics
Languages : en
Pages : 24
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Book Description
House prices in many advanced economies have risen substantially in recent decades. But experience indicates that housing prices can diverge from their long-run equilibrium or sustainable levels, potentially followed by adjustments that impact macroeconomic and financial stability. Therefore there is a need to monitor house prices and assess whether they are sustainable. This paper focuses on fundamentals expected to drive long run trends in house prices, including institutional and structural factors. The scale of potential valuation gaps is gauged on the basis of a cross-country panel analysis of house prices in 20 OECD countries.
Author: John Couch
Publisher:
ISBN:
Category : Housing
Languages : en
Pages : 34
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Book Description
Author: Albert Saiz
Publisher:
ISBN:
Category :
Languages : en
Pages : 59
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Book Description
Housing markets have been established as fundamental to understanding business cycles, financial market stability, labor mobility, household wealth, individual portfolio allocation, and urban dynamics. What determines local housing supply elasticities and prices? In this paper I give empirical content to the concept of land availability by processing satellite-generated data on elevation and presence of water bodies to precisely estimate the amount of developable land in each metro area. I demonstrate that development is effectively curtailed by the presence of slopes above 15% and that most areas that are widely regarded as supply-inelastic are, in fact, severely land-constrained by their topography. Furthermore, the extent of topographical constraints correlates positively and strongly with regulatory barriers to development. Immigration, high taxes, politics, and quot;communitarianquot; social capital are also predictive of more restrictive residential land regulations. I estimate a system of equations where housing prices, construction, and regulations are all determined endogenously. Housing supply elasticities can be well-characterized as functions of both physical and regulatory constraints, which in turn are endogenous to prices and past growth. The results provide operational estimates of local supply elasticities in all major US metropolitan areas.
