No Price Like Home : Global House Prices , 1870 2012
نویسنده
چکیده
How have house prices evolved over the long run? This paper presents annual house prices for 14 advanced economies since 1870. We show that real house prices stayed constant from the 19th to the mid-20th century, but rose strongly and with substantial crosscountry variation in the second half of the 20th century. Land prices, not replacement costs, are the key to understanding the trajectory of house prices. Rising land prices explain about 80 percent of the global house price boom that has taken place since World War II. Our ndings have implications for the evolution of wealth-to-income ratios, the growth e ects of agglomeration, and the price elasticity
منابع مشابه
Housing and Liquidity∗
In addition to providing utility, and possibly capital gains, housing facilitates credit transactions when home equity serves as collateral. We document big increases in home-equity loans coinciding with the US house-price boom, and suggest a connection. When it is used as collateral, housing bears a liquidity premium. Since liquidity is endogenous, and depends to some extent on beleifs, even w...
متن کاملHouse prices and home ownership : A cohort analysis
England has very volatile house prices. Using survey data spanning multiple house-price cycles over nearly forty years, we document the association between house prices and homeownership at age thirty. We then use synthetic cohort methods to assess whether differences in early ownership rates persist in later life. We find that ownership rates at age thirty have varied substantially, with a sig...
متن کاملHouse Price Indexes and the Global Financial Crisis
Why is this topic of house price indexes important? The Global Financial Crisis has several causes but a main cause was a housing bubble in the U.S. which led banks to make mortgage loans that were based on the assumption that house prices were not rising unusually quickly. If accurate regional house price indexes for the U.S. would have been widely available to the public, it is unlikely that ...
متن کاملStock prices and house prices: Which one affects the other?
Stocks and houses as two major assets which play important role in the balance sheet of Iranian households. Changes in two markets have a large influence on wealth and the general economy. The purpose of this study is to examine the relationship between stock and house prices over a thirty-year period using vector auto-regression (VAR). Using yearly data for the period from 1985 to 2013, we con...
متن کاملReal Estate Investors and the Boom and Bust of the US Housing Market∗
This paper studies residential real estate investors and their relationship with local house price movement using several comprehensive micro data on mortgage application and performance. The paper makes two contributions to the growing literature on the recent boom and bust of the US housing market. First, using mortgage application data, we document the important role played by real estate in...
متن کامل