Questions tagged [housing]

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29
votes
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 ...
17
votes
5answers
792 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 ...
14
votes
3answers
207 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 ...
11
votes
6answers
766 views

What metrics would indicate a house bubble rather than genuine market values?

There are concerns that Auckland, New Zealand, is currently experiencing a housing bubble. Auckland is one of the top 10 cities in the world on a housing unaffordability index. The question is - ...
10
votes
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 "...
8
votes
4answers
3k views

Correlation between salary level and housing prices in a town

Is there a measurable correlation in a town between salary level and housing prices? Or, to put it differently: is it politically meaningful to drive up salaries by new investments if the result is ...
8
votes
2answers
419 views

Historical US Housing Data Availability

Papers like Ng and Moench (2011) and Negro and Otrok (2007) use historical housing data to estimate latent variables that correspond to some "true" or "truer" measure of house prices or housing ...
8
votes
3answers
474 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 ...
7
votes
1answer
194 views

Literature on factors affecting number of houses built

Is there any existing literature on the various factors affecting the number of houses constructed in a particular city over, say, a given month? Factors might include: quality of housing stock, a ...
6
votes
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 (...
6
votes
2answers
157 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, ...
5
votes
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 ...
5
votes
3answers
766 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, ...
5
votes
1answer
234 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 ...
4
votes
4answers
326 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 ...
4
votes
1answer
79 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....
4
votes
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 ...
4
votes
1answer
47 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 ...
4
votes
0answers
41 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 ...
4
votes
0answers
52 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 ...
4
votes
1answer
248 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; ...
4
votes
1answer
168 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 ...
3
votes
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 ...
3
votes
2answers
200 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 ...
3
votes
2answers
99 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 ...
3
votes
2answers
92 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 ...
3
votes
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 ...
3
votes
1answer
73 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 ...
3
votes
1answer
50 views

Is there existing research on predicting the number of house listings based on exogenous data?

I've been looking for prior research by economists that predict the number of house listings in a particular city (or even, say, the probability that an individual in the city will list his house that ...
3
votes
1answer
137 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%). ...
3
votes
1answer
104 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 ...
3
votes
0answers
26 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 ...
3
votes
0answers
185 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 ...
2
votes
1answer
61 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 ...
2
votes
2answers
24 views

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 ...
2
votes
1answer
71 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, ...
2
votes
3answers
207 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 ...
2
votes
2answers
55 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 ...
2
votes
1answer
49 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 ...
2
votes
0answers
43 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 ...
2
votes
0answers
43 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 ...
2
votes
0answers
27 views

How do governments deflect risk through greater volatility in the housing market?

Source: p 123 of 296, Understanding Housing Policy, by Brian Lund Although housing immobility limits the impact of globalisation, its influence on financial and labour markets magnifies ...
2
votes
0answers
94 views

residential property shares trading (similar to REIT)

This year in the UK a residential property crowdfunding platform propertypartner.co went live and I would like to understand it from economic point of view. The idea is that a flat/house is purchased ...
1
vote
2answers
98 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 ...
1
vote
1answer
41 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 ...
1
vote
2answers
46 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 ...
1
vote
1answer
844 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 ...
1
vote
1answer
45 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 ...
1
vote
2answers
761 views

Why is airbnb more expensive than priceline?

Some might say I have an addiction to Priceline Name Your Own Price, however, what I can tell you is that NYOP rates for 2.5* and 3* hotels are always better than the room options offered through ...
1
vote
1answer
28 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 ...