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Did the Housing Boom Increase Household Spending

  • Anthony Webb
  • Shenyi Jiang
  • Wei Sun

Between 1995 and 2007, inflation-adjusted house prices more than doubled in some areas of the U.S. During this unprecedented boom, households spent more and reduced their saving rate. A key question is how much of the increased spending was related to rising house prices, as opposed to other factors? And, if households spent more when prices soared, are they likely to cut back during the housing bust? The answers can help in assessing retirement saving trends.

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File URL: http://crr.bc.edu/briefs/did-the-housing-boom-increase-household-spending/
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Paper provided by Center for Retirement Research in its series Issues in Brief with number ib2010-10.

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Length: 7 pages
Date of creation: Jul 2010
Date of revision: Jul 2010
Publication status: published on the Center for Retirement Research at Boston College website
Handle: RePEc:crr:issbrf:ib2010-10
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