IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2009_237.html
   My bibliography  Save this paper

The Impact of Low-Income Home Owners on the Volatility of Housing Markets

Author

Listed:
  • Peter Westerheide

Abstract

Our paper analyses the relationship between homeownership rates as a proxy for the ratio of low income homeowners and the volatility of housing prices. There might be a destabi-lizing impact because income risks of low income households might be higher, financial resources tend to be scarcer and their houses are probably financed with a higher leverage. Lower mobility and sticky wages of low income homeowners might on the other hand have a stabilizing impact on housing prices. Our results point to a positive impact of home ownership rates on house price volatility. Besides that house price volatility is influenced by the growth rate of house prices, GDP volatility and the level of interest rates. A VAR analysis suggests that the higher volatility in countries with high home ownership rates is caused by a greater sensitivity of house prices to changes in GDP growth rates.

Suggested Citation

  • Peter Westerheide, 2009. "The Impact of Low-Income Home Owners on the Volatility of Housing Markets," ERES eres2009_237, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2009_237
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2009-237
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2009_237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.