Taxes, income distribution, and the real estate cycle: why all houses do not appreciate at the same rate
Changes in house prices are generally reported on an aggregate basis. This article suggests that within a metropolitan area, high-value and low-value homes appreciate at different rates. Overall, the author’s results indicate that appreciation rates are more volatile for high-priced homes than for less expensive homes around the real estate cycle. ; The different rates of price appreciation are partly explained by changes in the user cost of owning a home. Cyclical factors also play a part. Furthermore, the author found that changes in the prices of lowervalue homes have a contemporaneous effect on high-end home prices, while the opposite is not true. His results suggest that in a house-price boom, first-time homebuyers may be in a better position to buy a lowpriced home than the reported, aggregate price index suggests.
Volume (Year): (1993)
Issue (Month): May ()
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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.:
- Goetzmann, William Nelson, 1992.
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- Heckman, James, 2013.
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Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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- Robert J. Shiller, 1991. "Arithmetic Repeat Sales Price Estimators," Cowles Foundation Discussion Papers 971, Cowles Foundation for Research in Economics, Yale University.
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- J. Allen Seward & Charles J. Delaney & Marc T. Smith, 1992. "An Empirical Analysis of Housing Price Appreciation in a Market Stratified by Size and Value of the Housing Stock," Journal of Real Estate Research, American Real Estate Society, vol. 7(2), pages 195-206.
- Barton A. Smith & William P. Tesarek, 1991. "House Prices and Regional Real Estate Cycles: Market Adjustments in Houston," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 396-416.
- Henry O. Pollakowski & Michael A. Stegman & William Rohe, 1991. "Rates of Return on Housing of Low-and Moderate-Income Owners," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 417-425.
- Donald R. Haurin & Patric H. Hendershott, 1991. "House Price Indexes: Issues and Results," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 259-269.
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