Questions tagged [housing]

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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 ...
Athaeneus's user avatar
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1 answer
72 views

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 ...
Yackov L's user avatar
1 vote
1 answer
58 views

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. ...
cel's user avatar
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1 vote
0 answers
38 views

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 ...
Chirag Arora's user avatar
1 vote
0 answers
91 views

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 ...
Mick's user avatar
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-2 votes
1 answer
43 views

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 ...
Kevin Kostlan's user avatar
1 vote
0 answers
65 views

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: $...
Tele's user avatar
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1 vote
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9 views

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 ...
Michael Howell's user avatar
2 votes
0 answers
47 views

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 ...
pssngr's user avatar
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2 votes
0 answers
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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 ...
Ryan's user avatar
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3 votes
1 answer
261 views

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 ...
kamilk's user avatar
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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,...
Gnar's user avatar
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1 answer
203 views

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: ...
Richard Hardy's user avatar
2 votes
0 answers
18 views

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 ...
stollenm's user avatar
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6 votes
4 answers
335 views

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 ...
Zaz's user avatar
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1 answer
69 views

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? ...
Max Goldsworthy's user avatar
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1 answer
76 views

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 ...
MWB's user avatar
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2 answers
141 views

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 ...
MWB's user avatar
  • 511
4 votes
1 answer
181 views

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....
Joe Jobs's user avatar
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4 votes
0 answers
54 views

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 ...
sba222's user avatar
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3 votes
3 answers
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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 ...
NIX's user avatar
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4 votes
1 answer
83 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 ...
Adam Bailey's user avatar
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1 vote
2 answers
196 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 ...
TheEnvironmentalist's user avatar
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1 answer
32 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], ...
user2994783's user avatar
2 votes
2 answers
111 views

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 ...
Ezekiel's user avatar
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3 votes
0 answers
30 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 ...
DoubtingThomas3005's user avatar
3 votes
2 answers
113 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 ...
user1605665's user avatar
2 votes
1 answer
316 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, ...
ahorn's user avatar
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7 votes
3 answers
576 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 ...
gerrit's user avatar
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5 votes
1 answer
45 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 ...
Dmitry Grigoryev's user avatar
2 votes
1 answer
69 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 ...
Physicist137's user avatar
1 vote
0 answers
14 views

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 ...
Vass's user avatar
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0 votes
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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 ...
Divyanshu Jain's user avatar
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0 answers
34 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 ...
Christian Singer's user avatar
1 vote
1 answer
50 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 ...
Kyle Delaney's user avatar
1 vote
0 answers
23 views

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 ...
cnst's user avatar
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1 vote
2 answers
50 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 ...
Manesidlapy's user avatar
4 votes
2 answers
111 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 ...
Vasting's user avatar
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0 votes
0 answers
51 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 ...
Gnumbertester's user avatar
1 vote
1 answer
3k 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 ...
Kushal Sai Gunturi's user avatar
1 vote
1 answer
55 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 ...
Ivana's user avatar
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4 votes
4 answers
621 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 ...
joeytwiddle's user avatar
2 votes
3 answers
247 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 ...
tparker's user avatar
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1 vote
1 answer
85 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 ...
vizie's user avatar
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4 votes
1 answer
488 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; ...
Bensstats's user avatar
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3 votes
2 answers
160 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 ...
Charlie's user avatar
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14 votes
3 answers
398 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 ...
EconJohn's user avatar
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2 votes
0 answers
56 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 ...
Brandon Frenchak's user avatar
12 votes
4 answers
8k 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 "...
tparker's user avatar
  • 770
3 votes
1 answer
145 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%). ...
Adam Bailey's user avatar
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