The U.S. house price boom has been linked to an unsustainable easing of mortgage credit standards. However, standard time series models of U.S. house prices omit credit constraints and perform poorly in the 2000s. We incorporate data on credit constraints for first-time buyers into a model of...

The hope that housing markets had stabilized in mid-2010 was dashed by subsequent declines in home construction and prices (Charts 1 and 2). Homebuilding peaked about five years ago, and housing prices almost four years ago. Amid such a prolonged downturn, a key question becomes, When will the...

Texas’ housing sector remains in the doldrums following demand spikes in 2009 and 2010 aided by the homebuyer tax-credit program. When the federal government first offered the incentive in mid-2008, Texas home sales and construction were in a rapid descent that began with the U.S. housing...

Before the housing boom and bust, changes in local house values appeared to be a local phenomenon. Now, however, the District’s house-price changes are mirroring national patterns. Therefore, downward trends in other parts of the country may continue to negatively affect prices in the District.

District Overview

Remarks at the New Jersey Bankers Association Economic Forum, Iselin, New Jersey.

Although the volatility of house prices is often ascribed to demand-side factors, constraints on housing supply have important and little-studied implications for housing dynamics. I illustrate the strong relationship in city-level data between the volatility of house prices and the regulation...

In this empirical analysis, we estimate the impact of vacancy, neglect associated with property-tax delinquency, and foreclosures on the value of neighboring homes using parcel-level observations. Numerous studies have estimated the impact of foreclosures on neighboring properties, and these...

In some newly transit-rich neighborhoods (TRNs), a new station can set in motion a cycle of unintended consequences in which core transit users—such as renters and low-income households—are priced out of the neighborhood in favor of higher-income, car-owning residents who are less likely to...

Remarks at Fordham University's Gabelli School of Business, Bronx, New York.