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Segmented Housing Search

Author

Listed:
  • Monika Piazzesi
  • Martin Schneider
  • Johannes Stroebel

Abstract

We study housing markets with multiple segments searched by heterogeneous clienteles. In the San Francisco Bay Area, search activity and inventory covary negatively across cities, but positively across market segments within cities. A quantitative search model shows how the endogenous flow of broad searchers to high-inventory segments within their search ranges induces a positive relationship between inventory and search activity across segments with a large common clientele. The prevalence of broad searchers also shapes the response of housing markets to localized supply and demand shocks. Broad searchers help spread such shocks across many segments and thereby reduce their effect on local market activity.

Suggested Citation

  • Monika Piazzesi & Martin Schneider & Johannes Stroebel, 2015. "Segmented Housing Search," NBER Working Papers 20823, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:20823
    Note: AP EFG ME PE
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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