Supersedes Working Paper 13-27. Reverse mortgage loans (RMLs) allow older homeowners to borrow against housing wealth …

This paper is superseded by WP 15-15 <p>The authors construct a quantitative equilibrium model of the housing market in … which an unanticipated increase in the supply of housing triggers default mortgages via its effect on house prices. The … decline in house prices creates an incentive to increase the consumption of housing space, but leverage makes it costly for …

Reverse mortgage loans (RMLs) allow older homeowners to borrow against housing wealth without moving. In spite of …

same trade-off in the single-family housing market. That market is dominated by homeowners, who constitute about two …-thirds of U.S. households. For them the choice about how much housing and what house to buy is a joint consumption …/investment decision. Furthermore, owner-occupied housing is by nature a lumpy investment whose risk cannot be completely diversified. Does …

for owner-occupied housing. The authors propose cross-checking the BLS statistics by using data on owner-occupied and … rental housing from the American Housing Survey. A hedonic approach that explicitly calculates capitalization rates appears … to be a feasible one for developing a methodologically consistent measure of the rental cost of owner-occupied housing. …

The authors investigate the impact of the tax treatment of owner-occupied housing on urban form in an economy in which … high- and low-income households choose among city and suburban communities. Because housing tax policies differentially … affect the relative, after-tax price of housing for high- and low-income households, and because the extent of capitalization …

. Owning a house provides a hedge against fluctuations in housing costs, but in turn introduces asset price risk. In a simple …’s expected horizon in its house and with the correlation in housing costs in future locations. Empirically, they find that both …