House Price Moments in Boom-Bust Cycles
In: Housing and the Financial Crisis
AbstractThis paper describes six stylized patterns among housing markets in the United States that potential explanations of the housing boom and bust should seek to explain. First, individual housing markets in the U.S. experienced considerable heterogeneity in the amplitudes of their cycles. Second, the areas with the biggest boom-bust cycles in the 2000s also had the largest boom-busts in the 1980s and 1990s, with a few telling exceptions. Third, the timing of the cycles differed across housing markets. Fourth, the largest booms and busts, and their timing, seem to be clustered geographically. Fifth, the cross sectional variance of annual house price changes rises in booms and declines in busts. Finally, these stylized facts are robust to controlling for housing demand fundamentals â namely, rents, incomes, or employment â although changes in fundamentals are correlated with changes in prices.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
This chapter was published in:
This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 12619.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location
- Y1 - Miscellaneous Categories - - Data: Tables and Charts
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph Gyourko & Eduardo Morales & Charles Nathanson & Edward Glaeser, 2011.
2011 Meeting Papers
307, Society for Economic Dynamics.
- Markus K. Brunnermeier & Christian Julliard, 2006.
"Money Illusion and Housing Frenzies,"
NBER Working Papers
12810, National Bureau of Economic Research, Inc.
- Ortalo-Magné, François & Prat, Andrea, 2010.
"Spatial Asset Pricing: A First Step,"
CEPR Discussion Papers
7842, C.E.P.R. Discussion Papers.
- Glaeser, Edward & Saiz, Albert & Gyourko, Joseph, 2008.
"Housing Supply and Housing Bubbles,"
2962640, Harvard University Department of Economics.
- John Y. Campbell & Stefano Giglio & Parag Pathak, 2011.
"Forced Sales and House Prices,"
American Economic Review,
American Economic Association, vol. 101(5), pages 2108-31, August.
- Edward L. Glaeser & Joshua D. Gottlieb & Joseph Gyourko, 2012.
"Can Cheap Credit Explain the Housing Boom?,"
in: Housing and the Financial Crisis, pages 301-359
National Bureau of Economic Research, Inc.
- Campbell, Sean D. & Davis, Morris A. & Gallin, Joshua & Martin, Robert F., 2009. "What moves housing markets: A variance decomposition of the rent-price ratio," Journal of Urban Economics, Elsevier, vol. 66(2), pages 90-102, September.
- Gadi Barlevy & Jonas D. M. Fisher, 2010. "Mortgage choices and housing speculation," Working Paper Series WP-2010-12, Federal Reserve Bank of Chicago.
- Narayan Bulusu & Jefferson Duarte & Carles Vergara-Alert, 2013. "Booms and Busts in House Prices Explained by Constraints in Housing Supply," Working Papers 13-18, Bank of Canada.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.