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

Author

Listed:
  • Jihee Ann

    (Research Division, Korea Real Estate Research Institute, 52 Bangbaero, Seochogu, Seoul, Korea 06705)

  • Cheolbeom Park

    (Department of Economics, Korea University, 145 Anamro, Seongbukgu, Seoul, Korea 02841)

Abstract

We apply a semiparametric approach to 19 metropolitan areas in the United States (US) to relate normalized house prices to entire age distributions in each area. We find that the shape of estimated age response functions differs across areas, although most areas show a negative impact of the elderly population on house prices. We further find that the age response function is more likely to be hump shaped when the population of an area becomes more aged, which also implies a negative aging impact. These results indicate that the impact of the elderly population will be negative as the population of an economy progresses toward becoming more aged.

Suggested Citation

  • Jihee Ann & Cheolbeom Park, 2020. "Demographic Structure and House Prices in the United States: A Reconciliation Using Metropolitan Area Data," Discussion Paper Series 2005, Institute of Economic Research, Korea University.
    • Handle: RePEc:iek:wpaper:2005
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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;
    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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