Real house prices are directly determined by the willingness of households to pay for (and willingness of builders to supply) a constant-quality house. Changes in the quantity of housing demanded will affect real prices only to the extent that the long-run housing supply schedule is positively...

Between 1960 and 1980, the number of households in the U.S. increased by 50 percent and the proportion of the population that were household heads rose from 29.5 to 36.3. While some of this increase was due to the maturing of the"baby boom" population, over half was caused by rising age-specific...

This paper summarizes the impact of economic, social and demographic variables on household formations and home ownership in the 1960-85 period and uses this knowledge to forecast household formations, and their split between owners and renters, through the year 2000. High and low growth...

A model is developed and utilized in this paper to value a life-of-loan interest-rate cap on an ARM that reprices monthly. The value of the cap is seen to depend importantly on both the slope of the term structure and the variance of the 1-month rate. However, the cap value is not sensitive to...

This paper computes how coupon rates on hypothetical default-free 1- 3- and 5-year adjustable rate mortgages with various caps and teaser rates issued during the 1970-76 period would have had to be set in order for the ARMs to have earned the market rate of return over a 7 1/2-year holding...

This paper makes two contributions. First, an internally consistent annual data set is constructed for the housing-units identity. For the 1961-85 period, data are computed for completions, mobile home placements, the change in households, the change in vacancies, and, residually, net other...

We analyze monthly returns on an equally weighted index of eighteen to twenty-three equity (real property) real estate investment trusts (REITs) that were traded on major stock exchanges over the 1973-87 period. We employ a multifactor Arbitrage Pricing Model using prespecified macroeconomic...