IDEAS home Printed from
   My bibliography  Save this paper

The Financial Crisis and the Role of Real Estate Investors


  • Wilbert van der Klaauw

    (Federal Reserve Bank of New York)

  • Joseph Tracy

    (Federal Reserve Bank of New York)

  • Donghoon Lee

    (Federal Reserve Bank of New York)

  • Andrew Haughwout

    (Federal Reserve Bank of New York)


Our analysis is based on a unique administrative panel dataset based on quarterly data from consumer credit reports and covering the 1999-2009 period. The data allow us to look at all the mortgage and non-mortgage debts at the individual level and also at the household level. We follow individuals and households who have had multiple first mortgages at any point between 2004 and 2009, and track their mortgage balances and delinquencies. Preliminary results show that, initially in 2004, investors were six times safer than single mortgage holders. However, as of 2008, they contributed more than 40% of all seriously delinquent balances nationwide and were 50% more likely to be seriously delinquent than the single first mortgage holders. This suggests that there was a significant role of initially prime borrowers who invested heavily in the housing market in the course of the housing crisis.

Suggested Citation

  • Wilbert van der Klaauw & Joseph Tracy & Donghoon Lee & Andrew Haughwout, 2011. "The Financial Crisis and the Role of Real Estate Investors," 2011 Meeting Papers 201, Society for Economic Dynamics.
  • Handle: RePEc:red:sed011:201

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Hilber, Christian A.L. & Schöni, Olivier, 2020. "On the economic impacts of constraining second home investments," Journal of Urban Economics, Elsevier, vol. 118(C).
    2. Griffin, John M. & Kruger, Samuel & Maturana, Gonzalo, 2021. "What drove the 2003–2006 house price boom and subsequent collapse? Disentangling competing explanations," Journal of Financial Economics, Elsevier, vol. 141(3), pages 1007-1035.
    3. Christoph Basten & Mike Mariathasan, 2018. "How Banks Respond to Negative Interest Rates: Evidence from the Swiss Exemption Threshold," CESifo Working Paper Series 6901, CESifo.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:red:sed011:201. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.