The housing boom that preceded the Great Recession was due to an increase in credit supply driven by looser lending … observations: the unprecedented rise in home prices and household debt, the stability of debt relative to house values, and the …

"This paper characterizes the labor supply and borrowing of a household facing collateral requirements that limit its … debt and compel it to accumulate equity in its durable goods stock. The household's discount rate exceeds the market rate … constraints generate a positive comovement between the household's debt, the stock of durable goods and labor supply following …

In this paper we use a large panel of individuals from Consumer Credit Panel dataset to study the timing of … homeownership as a function of credit constraints and expectations of future house price. Our panel data allows us to track … with lowest quartile house price growth. The result suggests that the effect of expectation dominates the effect of credit …