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A Housing Portfolio Channel of QE Transmission

Author

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  • Boddin, Dominik
  • te Kaat, Daniel Marcel
  • Ma, Chang
  • Rebucci, Alessandro

Abstract

We document a housing portfolio channel of quantitative easing (QE) transmission exploiting variation in German household data in a difference-in-differences setting around QE adoption in 2015. We find that QE encourages households with larger initial bond positions to rebalance more toward second homes. Rebalancing is especially pronounced among higher-income and church-affiliated households with stronger tax incentives to purchase and rent out properties. We also show that, in regions more exposed to this channel, house prices increase more than rents, and sale listings decrease more than rental ones, suggesting that the rental supply may increase in response to QE.

Suggested Citation

  • Boddin, Dominik & te Kaat, Daniel Marcel & Ma, Chang & Rebucci, Alessandro, 2024. "A Housing Portfolio Channel of QE Transmission," CEPR Discussion Papers 18876, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:18876
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    2. Boddin, Dominik & te Kaat, Daniel Marcel & Ma, Chang & Rebucci, Alessandro, 2025. "Portfolio flows and household portfolios," European Economic Review, Elsevier, vol. 172(C).
    3. Martin Groiss & Nicolas Syrichas, 2025. "Monetary Policy, Property Prices and Rents: Evidence from Local Housing Markets," Berlin School of Economics Discussion Papers 0058, Berlin School of Economics.
    4. Gomes, Francisco & Peng, Cameron & Smirnova, Oksana & Zhu, Ning, 2025. "Reaching for yield: Evidence from households," Journal of Financial Economics, Elsevier, vol. 168(C).
    5. Gomes, Francisco & Peng, Cameron & Smirnova, Oksana & Zhu, Ning, 2025. "Reaching for yield: evidence from households," LSE Research Online Documents on Economics 125397, London School of Economics and Political Science, LSE Library.
    6. Mesbah Fathy Sharaf & Abdelhalem Mahmoud Shahen & Mansour Abdullateef Alharaib, 2025. "Tracing the COVID-19 Footprint: A Sectoral Interrupted Time Series Analysis of Real Estate Price Dynamics in Saudi Arabia," Working Papers 1781, Economic Research Forum, revised 20 Jul 2025.

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    Keywords

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    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G5 - Financial Economics - - Household Finance
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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