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Housing price variability: national and local impacts

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  • Ting Zhang
  • Dan Gerlowski
  • Deborah Ford

Abstract

This article examines the influence of national and local forces on housing prices in 20 local US real estate markets during the recent housing price run-up and decline. We use reduced-form panel data fixed-effects models with robust SEs to determine the impact of national and local effects on housing prices in 20 US cities across time. A national home price index and mortgage rate are used to measure national impacts on the local markets. A mix of socio-economic variables estimates local impacts. We find no results indicating that national trends lack relevance in local markets; however, we find wide support for the additional inclusion of local socio-economic factors in all markets. The findings are consistent with an environment in which national polices and trends influence all markets; however local policymakers and investors can continue to expect geographic differences in market outcomes.

Suggested Citation

  • Ting Zhang & Dan Gerlowski & Deborah Ford, 2014. "Housing price variability: national and local impacts," Applied Economics, Taylor & Francis Journals, vol. 46(28), pages 3494-3502, October.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3494-3502
    DOI: 10.1080/00036846.2014.929628
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    References listed on IDEAS

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    Cited by:

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    2. Yu, Liangliang & Cai, Yinying, 2021. "Do rising housing prices restrict urban innovation vitality? Evidence from 288 cities in China," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 276-288.

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