Questions tagged [housing]

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Current House Demand and Supply

Home prices are at an all time high so according to supply and demand, that means suppliers will supply more homes due to the high prices. Demand for a house on the other hand is also at an all time ...
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1answer
43 views

Are there Recent Studies of Price Elasticity of Demand for Housing in England?

To address what is widely perceived as under-supply of housing in England resulting in high costs of housing, the UK government has set a target of 300,000 new homes annually (the target relates to ...
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1answer
36 views

Why doesn't the San Francisco Bay Area have two-story houses?

The San Francisco Bay Area is an interesting place. Housing prices are through the roof (hehe) and increasing by an average of 5-20% per year for the past 20 years. This is largely driven by an ...
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1answer
18 views

House allocation: Data notation correction with Top Trading Cycles (TTC) example

I am trying to understand TTC algorithm for house allocation. I have got a small problem. I am trying to understand the following example: IE=[i1 , i2 , i3 , i4], IN=[i5], Ho=[h1 , h2 , h3 , h4], ...
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2answers
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Why should the cost of home ownership and home renting be equal in the long run?

According to the person in this video (at about 10:10) from the economist, the evidence shows that long run cost of owning and renting homes are approximately same. The video itself tries to explain ...
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24 views

Impacts of Suspending Mortgage and Rent Payments

Recently, there has been some support for suspending rent and mortgage payments, the goal being to provide financial relief during the Covid-19 response. I'm wondering what the impacts for the ...
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2answers
96 views

When a land lords sells to an owner occupiers does it push up rents?

In the article Landlords who own one property ‘left without relief’ under new Victorian Government package posted on 15 April 2020 on the domain website. Barry Plant chief executive Mike McCarthy ...
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0answers
26 views

Why is imputed rental income for owner-occupied housing included in the measurement of household income?

In the National Income Dynamics Study in South Africa, total household income is measured by totalling labour income, government income, investment income, capital income, agricultural income, ...
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3answers
457 views

If rent control “doesn't work” and supply induces demand, how can cities improve affordability?

Suppose we aim that moderately poor people (let's say 1.5× minimum wage) can afford the rent for an apartment meeting minimum quality standards and located within city limits. This may be a political ...
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1answer
42 views

Are short-let platforms really contributing to rising rent prices?

Short-term rent services such as AirBnB are often criticized for eroding the communities by increasing rent prices for locals: ... as short-term letting transfers much-needed housing from the ...
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1answer
46 views

What determines rent prices of houses? Does it depend only on interest rates?

My hypothesis: the renting is determined by the opportunity cost of selling the house and gaining interests in a bank or some investment company. That is, instead of renting, sell it, put the money in ...
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Does the property values (or rental price) of a neighborhood/region increase with new residents taking up empty lots or apartments changing residency?

Does research explore the idea that there is an association of house prices in an area or neighborhood with the influx of new residents? That is, if there are empty spaces in a neighborhood, or ...
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How is matching theory used in context of Marriage market difference in terms of which is used in context of labour and housing market?

I am looking for an overview as most of the introduction to matching talks about the work done in the Marriage market, Job Matching which is axiomatic. Then while looking at Labour and housing market ...
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27 views

Why should houses have the same price for a given supply

So I'm reading Varian intermediate microeconomics and in chapter one it's about housing. Suppose we have a inner ring and a outer ring in a city where there is a university. In the inner ring supply ...
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1answer
25 views

Is it better for low-income people to live in the countryside where it's cheap or in the city where there are more services?

Supposing someone is struggling to pay the rent in an urban area, and they don't have anything tying them down to any one place, would it make sense to move to a rural area where the rent is much ...
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Is rent on a relocation — an example of unfunded liability?

I'm not too sure if the question makes much sense, but let's assume that you get a job offer in SF, and in order to accept, you basically have to sign a 6- or 12-month contract for rent in order to be ...
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2answers
45 views

I bought a house on a mortgage. If its price changes later, how will it affect the ease of repaying the loan? [duplicate]

I had some difficulty in understanding this paragraph in an article explaining the movie, 'The Big Short': Most of us when buying a house take out a loan (mortgage) and pay back the purchase ...
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2answers
99 views

How does a refinance allow a mortgage to be repaid?

A textbook I'm reading states (talking about the years leading up to the financial crisis): As long as housing prices increased, these mortgages were secure: the borrower rapidly ...
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43 views

Is the development of market rate housing independent of the development of affordable housing?

Is the development of market rate housing independent of the development of affordable housing? Can anyone provide evidence that supports or refutes this? Here is my thinking. While I have yet to ...
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1answer
420 views

Can Direct Taxes on the consumers have a impact on the Demand (rather than supply)?

I'm a 12th-grade student doing a school research paper evaluating the effectiveness of the recent increase in Additional Buyers Stamp Duty in the Singapore Housing market. This tax is directly imposed ...
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1answer
43 views

Why would a politician sollicit foreign investors to come and buy real estate?

In the Netherlands we have a shortage of affordable housing. Especially in urban areas, especially housing in the price ranges affordable for young people and middle and low incomes. This is pretty ...
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4answers
217 views

If house prices appreciate, why do developers sell them?

In many parts of the world, people buy a house expecting its value to increase over time. But if is widely believed that the building's value will increase, what incentive is there for the developer ...
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3answers
191 views

Should housing be considered a form of capital for the purpose of capital gains taxation?

Economists across the political spectrum almost unanimously oppose the home mortgage interest tax deduction. While I'm sure there are a few whom I've missed, I could only find a single professional ...
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1answer
63 views

Demand curve for items where consumers typically only buy a single product

This question began with rental housing (most people do not rent multiple apartments). The demand for apartment units in any given period is limited to the number of people searching for units (not ...
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1answer
181 views

Papers on Game Theory and the Housing Market

Professor George Fallis in his book "Housing Economics" writes: (Chapter 4 pg. 78) The (home)owners will establish a pricing strategy depending on how they believe demanders are behaving; ...
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2answers
88 views

Are expensive cities economically threatened by an inability to house low-income workers?

Cities like New York, San Francisco, and others enjoy booming local economies that support high-paying jobs in industries like finance and technology. This and other factors have driven the price ...
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3answers
153 views

Economics of Homelessness: Are housing prices to blame?

Lots has been written in terms of the social context of homelessness. Often attributing the causes due to mental illness, previous criminal activity and addiction. I've been wondering, how much of a ...
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0answers
42 views

Does Fannie Mae get money from the FED

Does Fannie Mae directly or indirectly get money that is printed from the federal reserve to buy mortgages, or have they ever? If so, when has this happened? How much money? What is the process by ...
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4answers
6k views

Why are high/rising property values considered a good thing?

Increasing prices for housing are pretty much universally treated as positive in the news and in political discourse: newspapers run headlines like "Good news: Home values are up" and talk about "...
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1answer
134 views

Are there any economic reasons that could justify a higher tax rate on housing repairs than on construction of new houses?

In the UK, a builder constructing a new home need not add tax to the price charged, but a builder undertaking repairs or renovations to an existing home must add value added tax (VAT, currently 20%). ...
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1answer
55 views

Could a tax on rental income that depends on price per square meter induce more housing with lower rents?

The background of this question is: In Germany rental income is generally taxed the same as regular business income. In some cities, there seem to be housing shortages across different incomes. Are ...
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5answers
752 views

Has an increase in housing supply in popular cities including Amsterdam led to an increase in house prices?

Common economic thinking dictates that an increase in price should lead to an increase in supply, and that an increase in supply should then lead to a decrease in price. According to Maarten van ...
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1answer
100 views

Episodes of Housing Crashes and Never Recovering

Looking at many housing markets in major cities around the world today it looks like most (London, New York, Sydney, Beijing, Toronto,...) have become totally detached from the earnings of the local ...
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10answers
15k views

A law against selling any house cheaper than it was bought for, what consequences would that have?

I'm looking for a more general and principled answer and use Scandinavia today only as a sketchy example of the kind of scenario I'm asking about. I live in Scandinavia where house prices has had an ...
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2answers
72 views

what mathematical function we can use to show house price changes in time? [closed]

I want to know if I have data of house prices of an area in time, what mathematical function will best fit it's graph? Or in other word, what function I could use that in time $t$, $f(t)$ will be a ...
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1answer
42 views

What happend to the dollar value in the time of the housing crisis

I am wondering what happens to the value of the coin in a country with an housing crisis. Take the USA as an example: They had a housing crisis and I wonder how it effected the value of the dollar and ...
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0answers
152 views

Did a similar property boom take place in another country or throughout history like we have seen in London? If so how did it effect the economy?

The London property market has seen a sharp increase in the average house price. If we go back to the 70's the average UK and average London price were almost the same, however since than the gap has ...
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1answer
109 views

Does easy credit in a region cause property to be more expensive?

Does easy credit (e.g. lower minimum down payment, lower interest rate) cause housing prices (purchase, rent) in that area to be more expensive? Intuitively, this seems to be the case, because the ...
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2answers
624 views

The Effect of Two income Households on Housing Prices

In the book The Two-Income Trap: Why Middle-Class Parents Are Going Broke) by Warren and her daughter, she states the following in chapter 1: If two-income families had saved the second paycheck, ...
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1answer
682 views

why do we analysis the housing market from 'short run' and 'long run'? [closed]

As we can see the factors impacting the housing market, particularly house price, are always analysed from the long run and short run, even some researchers analysis those factors from cyclical and ...
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4answers
1k views

What are the economic ramifications of rent control?

What effect do they have on renters? Landlords? Are there examples of rent control working, improving living conditions for renters? I.e. What are the main arguments for/against rent control (...
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0answers
184 views

Reference Request: Cost Benefit Analysis of Conversion of Undeveloped Land for Housing

London is surrounded by a "green belt", a large area which government policy has protected from housing development. The current high cost of housing in London has led some to advocate a selective ...
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2answers
194 views

Authoritative Books on Subprime Mortgage Crisis

I'm looking to learn more in detail about the situations and actions that setup the sub-prime mortgage crisis. In particular I'm looking for an authoritative book or books that provides a multifaceted ...
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0answers
41 views

Why do people not all live right on top of each other in monocentric city model?

I'm supposed to learn to derive the monocentric city model from these assumptions: everyone has the same preferences, same income, same work location (Central Business District, single point with ...
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1answer
55 views

Listed property price v.s. transaction price

A house may be listed at a certain price (e.g. £200,000), but sells for a different price (e.g. £210,000). In terms of economic theory, how does the transaction price tell us more information than ...
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2answers
150 views

How much do real-estate prices correlate with apartment rental prices?

I've been trying to find sources that mention this, and have tried to find graphs of data so I can compare myself, but I haven't been able to. Do real-estate sale prices correlate positively, ...
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0answers
51 views

Test data for repeat sales indices

I'm interested in calculating a repeat sales index like that of Case and Shiller (1987) or Bailey, Muth and Nourse (1963). While I believe I have a handle on the econometrics, to test my ...
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1answer
40 views

Literature Request: how does the house quality distribution change endogenously over time?

Is there existing literature on how the distribution of housing quality changes with time? For example, literature saying "using 2000 as a baseline distribution $X$, the housing quality distribution ...
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1answer
72 views

What is the rate of new house construction in Auckland, New Zealand?

What is the rate of new house construction in Auckland, New Zealand, where the housing market seems to have gone to the roof? Assuming that the current high prices of Auckland houses are a result of ...
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1answer
211 views

Why are New Zealand houses so badly insulated?

New Zealand is relatively new country. It essentially was founded in 1840 in a contract between the native Maori people and the British Government. For some reason a large chunk of the housing ...