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We test for the existence of housing bubbles associated with a failure of the transversality condition that requires the present value of payments occurring infinitely far in the future to be zero. The most prominent such bubble is the classic rational bubble. We study housing markets in the...
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We study equilibrium outcomes in markets with asymmetric information about asset values among both buyers and sellers. In residential real estate markets hard-to-observe neighborhood characteristics are a key source of information heterogeneity: sellers are usually better informed about...
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and homeownership. The cost of shelter is an important determinant of whether youth live independently (apart from parents … and other nonrelated adults), and the cost of homeownership relative to renting is important to the tenure decision … lowered the homeownership rate among young households by 23 percent, which is equivalent to slowing the time to first …
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homeownership. The factors related to this increase are marriage, increased labor supply by married women, and gifts …
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This paper describes the real wealth accumulation of American youth and relates this behavior to variations in real constant-quality house prices in their localities of residence. We argue that increases in the real constant-quality house price have two offsetting effects on wealth. First, the...
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