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Demographic Structure and House Prices in the United States: Reconciliation Using Metropolitan Area Data

Author

Listed:
  • Ann , Jihee

    (Korea Real Estate Research Institute, South Korea)

  • Park, Cheolbeom

    (Korea University, South Korea)

Abstract

We apply a semiparametric approach to 19 metropolitan areas in the US to relate normalized house prices to the age distribution within each area. We find that, although the elderly population has a negative impact on house prices in most areas, the shape of the estimated age response function differs between areas. We further find via probit and logit regressions that the age-response function is more likely to become inverted U-shaped as the population of an area becomes more aged, which is also suggestive of the negative impact of aging. These results indicate that the impact of the elderly population becomes more negative as the population ages.

Suggested Citation

  • Ann , Jihee & Park, Cheolbeom, 2022. "Demographic Structure and House Prices in the United States: Reconciliation Using Metropolitan Area Data," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(3), pages 57-71, September.
    • Handle: RePEc:ris:jecdev:0010
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    References listed on IDEAS

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    More about this item

    Keywords

    Demographic Structure; Population Aging; House Prices; Semiparametric Approach; Probit Regression;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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