We quantify reference dependence and loss aversion in the housing market using rich Danish administrative data. Our structural model includes aversion, dependence, financial constraints, a sale decision, matches key nonparametric moments, including “hockey stick” listing prices with nominal gains, bunching at zero realized gains. Households derive substantial utility from gains over original ho...

This study evaluates the effectiveness of geographic diversification in reducing housing investment risk. To characterize diversification potential, we estimate spatial correlation and integration among 401 U.S. metropolitan housing markets. The 2000s boom brought a marked uptrend in housing market integration associated with eased residential lending standards and rapid growth in private mortg...

While filtering has long been considered the primary mechanism by which markets supply lowincome housing, direct estimates of that process have been absent. This has contributed to doubts about the viability of markets and to misplaced policy. I fill this gap by estimating a “repeat income” model using 1985-2011 panel data. Real annual filtering rates are faster for rental housing (2.5 percent)...

Immigration and House Prices in the UK This article studies the effect of immigration on house prices in the UK. It finds that immigration has a negative effect on house prices and presents evidence that this negative effect is due to the mobility response of the native population. Natives respond to immigration by moving to different areas and those who leave are at the top of the wage distrib...

Micro data over the life cycle shows different patterns of consumption for housing and non-housing goods: the consumption profile of non-housing goods is hump-shaped while the consumption profile for housing first increases monotonically and then flattens out. These patterns hold true at each consumption quartile. This paper develops a quantitative, dynamic general equilibrium model of life-cyc...

This paper explores the causes and consequences of cross-country variation in mortgage market structure. It draws on insights from several …elds: urban economics, asset pricing, behavioral …nance, …nancial intermediation, and macroeconomics. It discusses lessons from the credit boom, the challenges of mortgage modi…cation in the aftermath of the boom, consumer …nancial protection, and alternati...

The paper describes within-neighborhood economic segregation in U.S. metropolitan areas in 1985 and 1993. It uses the neighborhood clusters of the American Housing Survey, standardized by metropolitan area income and household size, to explore income distribution within neighborhoods at a scale much smaller than the census tract (a representative sample of households or ‘kernels’ and their ten ...