Questions tagged [housing]
The housing tag has no usage guidance.
79 questions
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Do negative-cashflow properties imply greater appreciation?
Some areas, such as the Bay Area in California and Cambridge, England have housing that, not accounting for appreciation, have a poor ROI compared to housing in the rest of the country due to ...
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Why aren't more cities privately owned by a single company
There is a city in Southern California called Irvine, perhaps one of the only few "private" cities in the US. That doesn't mean it doesn't have an elected body or government. It's still ...
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Declining housing prices led to decrease in demand?
From Blanchard et al. (2017). Macroeconomics: A European Perspective:
"When, in 2006, housing prices started declining in the USA, most
economists forecast that this would lead to a decrease in ...
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Market for capital goods of housing: Name of the model
I am searching for a model of the market for capital goods applied on purchase prices, rents, and supply of new housing.
The model, operating in continuous time, considers prices as a function of ...
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How much would it realistically cost to give housing to all Americans earning less than 40k per year?
There are certain programs in NYC like CityFHEPs and HUD housing throughout the US for people in a homeless shelter on cash assistance and/or some other conditions, making it possible, but quite ...
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Why use Zillow data rather than just BLS rental data?
Housing/Shelter costs constitute around a third of inflation. I've noticed though in many reports people cite official BLS rent inflation data as well as rent data from Zillow and other such sources.
...
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What would happen if we always built new homes to keep the house prices stable?
What would happen if the government passed a law to always keep on building new houses so the housing market never appreciated? What would be the economic impacts of this?
Currently housing is in ...
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Floor space per occupant distribution - changes over time [closed]
Where could I find statistics on the floor space per occupant as a function of wealth (or income) - preferably for the UK but any country with a reasonably high population density would do.
The ...
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How much does urban and small town decay raise housing costs elsewhere?
A considerable number of (parts of) cities and towns have experienced decay over the last few decades. Due to a combination of safety, lack of services, and job market changes people have fled these ...
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Simple DCF model with inflation and taxes - Why do inflation and taxes only matter jointly?
I'm putting together a simple discounted cashflow (DCF) model for a theoretical real estate investment. I think the model is correct, but I can't understand some of the results.
The model is simply:
$...
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What surveys will show the number of people who live in single family homes?
I'm looking for any source of data showing the number of people who report living in a single family home for a given year. I've already tried the Current Population Survey and the American Housing ...
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Can someone please explain this housing prices equation?
Can someone please explain to me the following formula from this paper ? It's on the end of page 16 and the beginning of page 17.
I don't know if it is asking too much, but I am looking at these ...
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141
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How will inflation affect foreclosure rates?
I should preface this by saying that I am not really familiar with or educated in economics. I have a hypothesis however, and I would like to know if there is research out there that supports or ...
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312
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Do property prices drive rent increases or do high rents attract buy-to-let investment?
It is not uncommon to hear someone complaint about the impact of buy-to-let investment on the costs of living. It is alleged to affect not only house prices themselves, but also prices at which these ...
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107
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Discrepancies of average/median net worth versus home values in USA?
I got a semi-interesting question, I think.
Why are there big discrepancies between the average vs median net worth (USA), 746,820 vs 121,760, and the average vs median home values, 453,300 vs 404,...
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A large spike in home ownership in the U.S. in 2020: why?
Noah Smith's blog post "Yes, most Americans own capital" states
A majority of American households — consistently a little less than 2/3 — are homeowners:
and follows that up with a figure:
...
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Is There Literature on Individual Demand Cap (in Housing Market)?
Some (obv. very left) politicians in germany propose to impose that owning housing should be capped at what a person does use him/herself. That is, you should not be allowed to own housing for ...
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How could real house prices tend to rise in the long-term?
It makes sense that house prices increase above the risk-free rate due to their risky nature and historical evidence and conventional wisdom seems to back up the idea that real house prices tend to ...
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Does this model of housing economy have a name, and if so, what are the common critiques?
I've been thinking about housing and the problem of rent recently and I came up with a simple idea that I'd like to explore further: what if renting a property transferred some ownership over time? ...
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Have the deregulation measures that caused the 2007-2008 crisis been rolled back?
The 2007-2008 financial crisis was largely attributed to several deregulation measures, especially the Gramm-Leach-Bliley act. Have any of these measures been rolled back after the crisis, or new ones ...
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Why would China's housing be in a bubble?
This popular video on YouTube, "China's Reckoning: Housing Crisis", suggests that the housing market in China is in a bubble, because the vacancy rate is very high.
However, it also ...
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Owner occupied public housing
What is Owner occupied public housing?
This text says "in Singapore at present about 86 per cent of the population live in public housing, of whom 90 per cent are home-owners."
https://www....
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Does economics explain why people prefer to live in the same home for long periods of time?
Based on actual spatial needs there would seem to be a case for changing homes more often than how often people move in practice; e.g. to respond to where a new job is located in the area, having ...
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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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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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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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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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137
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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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