just like any other economic field, housing market has two basic foundations which are demand and supply. its obvious that disequilibrum between these foundations, will drasticaly affect the housing affordability and can also lead to wide slump in many markets. that’s why, policy makers usually intend to stimulat the supply by means of providing low intrest loans, low priced land, etc. in this ...

Unsold new housing stocks may be closely related to housing market fluctuation, especially the difference between housing supply and demand, which is influenced by macroeconomic conditions. These factors simultaneously influence developers’ investment decisions and, thus, housing supply over time. However, previous research on the housing market has focused on explaining the statistical relatio...

An unusually rich source of data on housing prices in Stockholm is used to analyze the investment implications of housing choices. This empirical analysis derives market-wide price and return series for housing investment during a 13-year period, and it also provides estimates of the individual-speci®c, idiosyncratic, variation in housing returns. Because the idiosyncratic component follows an ...

This article investigates the portfolio choices of homeowners, taking into account the investment constraint introduced by Henderson and Ioannides (1983). This constraint requires housing investment by homeowners to be at least as large as housing consumption. It is shown that when the constraint is binding, the homeowner's optimal portfolio is ineffcient in a mean-variance sense. Thus, portfol...

Housing affordability in Australia is declining, especially for low-income tenants in the private sector. A number of attempts have been made to attract more private investment into boosting the supply of affordable housing in Australia. However, these attempts have been one-off and small-scale, enjoying very limited success. Large professional and institutional investors continue to avoid the ...

I use newly-released administrative data on properties owned by overseas companies to study the effect of foreign investment on the housing market in England and Wales. To estimate the causal effect, I construct an instrument for foreign investment based on economic shocks abroad. Foreign investment is found to have a positive effect on house price growth. This effect is present at different pe...

Households in the United States have long tended to concentrate their wealth in housing. In 2001, 68% of U.S. households were homeowners, according to the Federal Reserve’s Survey of Consumer Finances.1 The net worth of the median homeowner household was $171,700. The value of the median household’s primary residence was $123,000, and its housing equity was $53,000, or about 31% of its total ne...

Millions of Americans live in communities without an adequate supply of affordable housing. The governmental response to the crisis has focused on subsidies to private developers who build below–market housing, with the Low-Income Housing Tax Credit at the center of this effort. Although federally funded, the LIHTC program grants states wide latitude in distributing billions of dollars of tax c...