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Housing Market (housing + market)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	58%
Humanities and Social Sciences	41%

Kinds of Housing Market

local housing market

Selected Abstracts

ECONOMIC FUNDAMENTALS IN LOCAL HOUSING MARKETS: EVIDENCE FROM U.S. METROPOLITAN REGIONS

JOURNAL OF REGIONAL SCIENCE, Issue 3 2006
Min Hwang
ABSTRACT This paper investigates the effects of national and regional economic conditions on outcomes in the single-family housing market: housing prices, vacancies, and residential construction activity. Our three-equation model confirms the importance of changes in regional economic conditions, income, and employment on local housing markets. The results also provide the first detailed evidence on the importance of vacancies in the owner-occupied housing market on housing prices and supplier activities. The results also document the importance of variations in materials, labor and capital costs, and regulation in affecting new supply. Simulation exercises, using standard impulse response models, document the lags in market responses to exogenous shocks and the variations arising from differences in local parameters. The results also suggest the importance of local regulation in affecting the pattern of market responses to regional income shocks. [source]

Migration within England and Wales and the Housing Market

ECONOMIC OUTLOOK, Issue 3 2005
Article first published online: 27 JUL 200
Economic conditions exert a strong influence on regional migration. On the one hand, strong labour market conditions, as exemplified by low unemployment rates and high earnings, draw migrants into regions. On the other hand, strong housing market conditions can prevent movement since commuting may often be an alternative to migration. This can be thought of as giving rise to a migration equilibrium where high house prices choke off migration caused by strong labour market conditions. Expected capital gains in housing, however, can offset high levels of house prices, an effect ignored in previous literature. Migration can also be influenced more directly by the availability of housing relative to population without this being mediated through prices. This paper, by Gavin Cameron, John Muellbauer and Anthony Murphy, presents evidence on inter-regional net and gross migration between the regions of England and Wales that is broadly in accord with these expectations. [source]

Testing a Hazard Model for the Housing Market in New Orleans

AMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 2 2007
Amaresh Das
The article presents a search-theoretic approach to investigate the relationship between probability of a sale and market duration in the housing market. Using a hazard model to study duration dependence, the article, on the basis of data from New Orleans, provides empirical evidence that houses do exhibit duration dependence. [source]

Efficiency and Seasonality in the UK Housing Market, 1991,2001,

OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 3 2006
Leslie Rosenthal
Abstract This paper considers the informational efficiency of the UK owner-occupied housing market over the period 1991,2001. Original small-area, monthly, quality-adjusted house price index series are developed from raw housing transaction observations for a number of UK counties and cities. These series are then tested in an autoregressive setting for characteristics indicative of weak market efficiency and seasonality. The major conclusion drawn is that there exists little evidence to support notions of inefficiency in these markets over the period considered. [source]

Resale Externality and the Used Housing Market

REAL ESTATE ECONOMICS, Issue 3 2007
Shinichiro Iwata
The selling prices of used houses may not fully reflect the maintenance spending of current owners when prospective buyers are unable to conduct a thorough inspection before purchase. This article investigates how this resale externality problem affects the maintenance expenditures of homeowners. After considering both observable and unobservable repair expenses, the analysis shows that the resale externality reduces not only maintenance expenditures, but also household mobility. A treatment effects model is used to estimate the simultaneous relationship between mobility and maintenance in the Japanese resale housing market. The results indicate that the resale externality has a significant negative impact on maintenance expenditures. [source]

Risk and Return in the U.S. Housing Market: A Cross-Sectional Asset-Pricing Approach

REAL ESTATE ECONOMICS, Issue 4 2006
Susanne Cannon
This article carries out an asset-pricing analysis of the U.S. metropolitan housing market. We use ZIP code,level housing data to study the cross-sectional role of volatility, price level, stock market risk and idiosyncratic volatility in explaining housing returns. While the related literature tends to focus on the dynamic role of volatility and housing returns within submarkets over time, our risk,return analysis is cross-sectional and covers the national U.S. metropolitan housing market. The study provides a number of important findings on the asset-pricing features of the U.S. housing market. Specifically, we find (i) a positive relation between housing returns and volatility, with returns rising by 2.48% annually for a 10% rise in volatility, (ii) a positive but diminishing price effect on returns and (iii) that stock market risk is priced directionally in the housing market. Our results on the return-volatility-price relation are robust to (i) metropolitan statistical area clustering effects and (ii) differences in socioeconomic characteristics among submarkets related to income, employment rate, managerial employment, owner-occupied housing, gross rent and population density. [source]

Regressive Interest Rate Expectations and Mortgage Instrument Choice in the United Kingdom Housing Market

REAL ESTATE ECONOMICS, Issue 4 2001
David Leece
The paper considers the choice of mortgage instrument when the rate of interest is fixed for a short duration, with reversion to a variable (bullet) rate mortgage contract. The research is the first direct test for regressive interest rate expectations using United Kingdom data while testing for wealth and portfolio effects. The econometric modeling uses a variety of nonparametric and parametric techniques to control for classification error in the dependent variable. There is evidence that households adopt regressive interest rate expectations. The lack of statistical significance of wealth and portfolio effects confirms the short run cash flow perspective of United Kingdom mortgage choices. [source]

Local Housing Markets and Segregation in England

ECONOMIC OUTLOOK, Issue 1 2005
Article first published online: 2 FEB 200
In this article, Geoff Meen discusses patterns of economic segregation in England. Despite the emphasis that the government places on reducing segregation, patterns have, in fact, remained remarkably constant over, at least, the last twenty years. Dynamic changes in housing markets and migration over time help to explain these patterns, and evidence is presented on the extent to which house prices in certain local authorities have been under- or over-valued. The analysis also shows that, at the local level, housing markets exhibit non-linear behaviour, which hinders the effectiveness of housing policy in the most deprived areas and adds to economic segregation. [source]

The Long-Run Relationship between House Prices and Income: Evidence from Local Housing Markets

REAL ESTATE ECONOMICS, Issue 3 2006
Joshua Gallin
Many in the housing literature argue that house prices and income are cointegrated. I show that the data do not support this view. Standard tests using 27 years of national-level data do not find evidence of cointegration. However, standard tests for cointegration have low power, especially in small samples. I use panel-data tests for cointegration that are more powerful than their time-series counterparts to test for cointegration in a panel of 95 metro areas over 23 years. Using a bootstrap approach to allow for cross-correlations in city-level house-price shocks, I show that even these more powerful tests do not reject the hypothesis of no cointegration. Thus the error-correction specification for house prices and income commonly found in the literature may be inappropriate. [source]

Housing Markets And Regional Unemployment Flows In Great Britain

THE MANCHESTER SCHOOL, Issue 2 2003
Martin T. Robson
Over the past 20 years, there has been a great deal of interest from academic economists and policymakers in the UK in the contribution of the housing market to regional disparities in unemployment. However, despite a considerable body of research, there remains a great deal of uncertainty concerning the role played by different features of the housing market in shaping the regional pattern of unemployment. In this study, we aim to gain a deeper understanding of this issue by examining the relationship between housing market variables and the flows into and out of regional unemployment. Our findings indicate that both the level of regional house prices and the housing tenure mix have significant effects on the rate of flows into and out of regional unemployment and hence upon the equilibrium rate of unemployment in a region. In particular, we find that regions with a relatively high level of house prices and/or a low proportion of social rented housing will tend to have a relatively low equilibrium rate of unemployment, other things equal. [source]

Countervailing Immigration and Domestic Migration in Gateway Cities: Australian and Canadian Variations on an American Theme

ECONOMIC GEOGRAPHY, Issue 3 2007
David Ley
Abstract: This article addresses the spatial regularity of countervailing population flows of immigration and net domestic migration, respectively, into and out of large gateway cities. This regularity has been noted most often in the United States, and the argument presented here makes two new contributions. First, it extends the analysis to the principal Australian and Canadian gateway cities of Sydney and Toronto, making use of an extended time series of annual data. Second, it argues for the importance of the neglected effects of housing markets, in contrast to conventional accounts that stress cultural avoidance or labor market competition, in differentiating the two demographic streams. The article shows how trends in the housing market separate the locational preferences of immigrants from two diverse groups of domestic migrants. [source]

UK Household Debt: A Threat to Growth or Stability?

ECONOMIC OUTLOOK, Issue 1 2005
Article first published online: 2 FEB 200
The liberalisation of credit constraints in the 1970s for UK consumers has had important implications for the housing market and consumer spending. This paper by John Muellbauer1 examines the factors that have driven soaring consumer debt and house price levels; in particular those observed since the mid-1990s. By relying on recent econometric evidence and trends in credit availability, real income per head, nominal and real after tax mortgage rates, measures of perceived risk and broad demographic trends, it also analyses the prospects for house prices, mortgage debt and unsecured debt over the coming years. The outlook is for a ,soft landing' in the housing market and associated declines in the rate of growth of consumer debt, which, although probably not smooth, does suggest the underlying situation is more benign and less crisis-prone than it was in 1988,89. [source]

The Impact of Interest Rates and The Housing Market on The UK Economy

ECONOMIC OUTLOOK, Issue 2 2004
Adrian Cooper
The Chancellor has asked Professor David Miles to examine the UK market for longer-term fixed rate mortgages. This paper by Adrian Cooper, which is part of a study commissioned by the Miles Review, presents the results of a series of simulations using the OEF Model of the UK economy to investigate the contribution of the housing market to macroeconomic volatility and the implications of changing the structure of mortgage finance from the current variable rate system linked to short-term interest rates to a fixed rate system linked to long rates. The main findings are that the housing market has been a contributor to past volatility in the UK economy, and that moving to a fixed rate structure would reduce the impact of a change in interest rates on key macroeconomic indicators. [source]

Mortgage credit conditions in the UK

ECONOMIC OUTLOOK, Issue 3 2002
John Muellbauer
It is widely perceived that credit conditions for UK consumers, particularly in the mortgage market, have been radically liberalized since the 1970s. The implications for the housing market and consumer spending have been important. This article by John Muellbauer draws on a 1997 paper by the author which examined data from the Survey of Mortgage Lenders to learn, from information about loan-to-value ratios of first-time buyers, classified by region, about changes in mortgage credit conditions. By controlling for economic and demographic influences on credit conditions, a single time-varying index of mortgage credit conditions was extracted from these SML data. This index rises in the 1980s, peaking towards the end of the decade. It retraces part of its rise in the early 1990s before rising again by 1995 to a level not far below the previous peak. The article considers whether more recent data suggest a further liberalisation of mortgage credit conditions. It draws on joint research with others to discuss possible implications for consumer spending, house prices, the volume of property transactions and mortgage defaults. [source]

Why Do Mortgage Markets Matter?

ECONOMIC OUTLOOK, Issue 4 2000
Geoffrey Meen
1999 saw the return of large scale mortgage equity - ie mortgage borrowing to finance consumption rather than house purchase - for the first time for a decade. Recent developments of the OEF macroeconometric model of the UK economy have focused on the determination of mortgage lending, looking in particular at the impact of downpayment constraints - ie the deposit borrowers have to put down when they buy a house. In this article, Geoffrey Meen uses this model to analyse the effects of mortgages on: (i) the cycle in the UK housing market at a national level; (ii) regional house price differentials; and (iii) aggregate savings and consumer behaviour. [source]

Aggregation Bias in Elasticities of Substitution and the Minimum Wage Paradox

INTERNATIONAL ECONOMIC REVIEW, Issue 2 2000
Coen N. Teulings
While the employment effects of minimum wages are usually reported to be small (suggesting low substitutability between skill types), direct estimates suggest a much larger degree of substitutability. This article argues that this paradox is largely due to a bias induced by the aggregation of skill types into broad categories. An assignment model is applied where skilled workers have a comparative advantage in complex jobs. The implied pattern of substitutability reveals the sources of the bias. Estimation results for the United States show elasticities of complementarity to be underestimated by up to a factor 2.5. The methods laid out likewise can be applied to other markets where different quality types are close substitutes, such as the housing market. [source]

Comments on Jeff R. Crump's ,The end of public housing as we know it: public housing policy, labor regulation and the US city'

INTERNATIONAL JOURNAL OF URBAN AND REGIONAL RESEARCH, Issue 1 2003
Alex SchwartzArticle first published online: 13 MAY 200
Jeff Crump's discussion of housing policy in the United States is highly polemic but not very analytic or informative. Crump argues that federal housing policy is attempting to move people out of public housing and into the private housing market and the lowwage labor force. However, he fails to support his argument with credible evidence. My comments point out the most egregious of Crump's claims. I start with Crump's most extreme contentions that housing policy is coercing public housing residents into the low-wage labor force. I then question his dismissive attitude toward the problems confronted by residents of distressed public housing and policies designed to help low-income families move out of impoverished neighborhoods. I subsequently show how Crump exaggerates the extent to which federal housing policy is clearing central cities of subsidized low-income housing. I conclude with a few words on the serious issues that a more informed critique of US housing policy could have raised. L'exposé de Jeff Crump sur la politique du logement aux Etats-Unis relève principalement de la polémique, plus que de l'analyse ou de l'information. Selon lui, la politique fédérale tente de déplacer la population des logements sociaux vers les marchés de l'habitat privé et de la main-d',uvre à bas salaires. Toutefois, il n'apporte aucune preuve crédible à son propos. Ma réaction porte sur ses arguments les plus insignes, en commençant par ses allégations extrémistes selon lesquelles la politique du logement contraint les habitants des logements publics à des emplois peu rémunérés. Je remets ensuite en cause son dédain à l'égard des difficultés que rencontrent les résidents des logements sociaux insalubres, sans oublier les politiques prévues pour aider les familles à faibles revenus à quitter les quartiers pauvres. En conséquence, à mon avis, Crump exagère la mesure dans laquelle la politique fédérale élimine des centres-villes les habitats à loyer modéré subventionnés. En quelques mots, ma conclusion porte sur les questions graves qu'aurait pu soulever un commentateur mieux documenté sur la politique du logement aux Etats-Unis. [source]

Does Urban Public Housing Diminish the Social Capital and Labor Force Activity of Its Tenants?

JOURNAL OF POLICY ANALYSIS AND MANAGEMENT, Issue 3 2001
David A. Reingold
This paper investigates the effect of urban public housing on the social capital and labor force activity of its tenants using cross-sectional survey data from the Multi-City Study of Urban Inequality (MSCUI). A structural equation model of the hypothesized direct and indirect effects of public housing and neighborhood disadvantage on social capital and labor force activity is specified and fitted to these data. The modeling results suggest that urban public housing is strongly associated with neighborhood disadvantage but has little or no direct effect on either social capital or labor force activity. And while public housing may have indirect effects on social capital and labor force activity through neighborhood poverty, these indirect effects appear to be small. These findings have implications for the current emphasis in urban public housing policy on moving residents into the private housing market and reducing poverty concentration. © 2001 by the Association for Public Policy Analysis and Management. [source]

ECONOMIC FUNDAMENTALS IN LOCAL HOUSING MARKETS: EVIDENCE FROM U.S. METROPOLITAN REGIONS

Testing a Hazard Model for the Housing Market in New Orleans

Efficiency and Seasonality in the UK Housing Market, 1991,2001,

Job and residential search behaviour of two-earner households,

PAPERS IN REGIONAL SCIENCE, Issue 4 2000
Jos van Ommeren
Two-earner households; job mobility; residential mobility; commuting; search Abstract Even though a large share of the workforce belongs to two-earner households, job search models invariably ignore the interaction between the wage earners of the same household. In this article, job and residential search behaviour of two-earner households are simultaneously analysed. The main finding of the theoretical model is that two-earner households search less intensively in the housing market, and more intensively in the labour market, if the distance between the workplaces of the two wage earners is longer. In the empirical part the latter finding has been analysed based upon a data set for Dutch two-earner households. [source]

Dynamics of ethnic residential segregation in Göteborg, Sweden, 1995,2000

POPULATION, SPACE AND PLACE (PREVIOUSLY:-INT JOURNAL OF POPULATION GEOGRAPHY), Issue 2 2008
Åsa Bråmå
Abstract Most explanatory frameworks within segregation research interpret patterns of ethnic residential segregation as the result of how members of different ethnic groups have moved (or not moved) within the city and to the city from the surrounding world. Yet, few attempts have been made to proceed beyond relatively static accounts based on descriptions and analysis of patterns of segregation, to address more directly the dynamics behind the patterns. In this article, a longitudinal, individual-based data-set is used in order to analyse the dynamics, in terms of migration and natural population change, that have reproduced and transformed patterns of segregation in Göteborg (Gothenburg), Sweden, between 1995 and 2000. The analysis deals with questions concerning changes in the degree of concentration and dispersal of different minority groups, and the role of the minority enclaves as ports of entry to the local housing market for different groups. The findings have relevance for wider theoretical issues related to the interpretation and explanation of ethnic residential segregation. Copyright © 2008 John Wiley & Sons, Ltd. [source]

Housing costs and the geography of family migration outcomes

POPULATION, SPACE AND PLACE (PREVIOUSLY:-INT JOURNAL OF POPULATION GEOGRAPHY), Issue 4 2006
Suzanne Davies Withers
Abstract This paper takes a geographical approach towards assessing the ,returns' to family migration by addressing explicitly the impacts of differences in the cost of housing between the place of origin and place of destination for family migrants. While numerous studies have examined differences in labour-force participation and wages subsequent to migration, particularly on the part of wives, few studies have considered the local housing and labour market contexts of these events. This study examines the adjusted earnings outcomes resulting from migration for husbands, wives and families in the United States in the context of local housing costs. Our findings challenge the assumption of simple economic gains and instead indicate that who gains and who loses from family migration is quite complex. The geographical context of family migration is critical in determining gains and losses, and is interrelated with moves in and out of the labour market on the part of wives. Our research indicates that wives who leave the labour market after a move are very likely to have moved to a more affordable housing market. Conversely, wives are found to enter the labour market when the move is to a more expensive housing market. For this group, wives' earnings considerably mitigate the impact on overall family earnings. This paper provides an important contribution to understanding family migration by positioning the analysis of migration outcomes within the context of labour markets and local housing market costs. Copyright © 2006 John Wiley & Sons, Ltd. [source]

Resale Externality and the Used Housing Market

Risk and Return in the U.S. Housing Market: A Cross-Sectional Asset-Pricing Approach

Microsimulation Modelling of Tenure Choice and Grants to Promote Home Ownership

THE AUSTRALIAN ECONOMIC REVIEW, Issue 1 2006
Gavin Wood
This article develops a microsimulation model of the Australian housing market that has tenure choice as its principal focus. The article sheds light on the role played by relative prices, wealth and borrowing constraints in shaping housing tenure choices. We explore the model's capabilities as an aid to policy making by reporting the findings from an impact analysis of grant programs designed to ease the transition of first home buyers into owner occupation. We find a large demand for home ownership that is not met because of borrowing constraints. The need to meet financial institutions' down payment requirements is particularly important. Government grants made available to first home buyers will ease down payment requirements, but the formal incidence of such a subsidy is found to be inequitable among potential first home buyers, and its impact is largely to bring forward purchase decisions. [source]

Housing Markets And Regional Unemployment Flows In Great Britain

BINGE BORROWERS OR RATIONAL CONSUMERS?

ECONOMIC AFFAIRS, Issue 1 2008
THE FSA AND GOVERNMENT FAILURE
The FSA seeks to address the putative financial incompetence of the borrowing public by improving its financial capability. The response of rational agents to asset price inflation in the UK is one indication of the competence with which many people use innovations in the financial services industry. The FSA succeeds only in shielding government failures in the money and housing markets. [source]

Imbalances in EU housing markets

ECONOMIC OUTLOOK, Issue 4 2009
Article first published online: 28 OCT 200
First page of article [source]