Sun, Xiaojin; Tsang, Kwok Ping - Department of Economics, Virginia Polytechnic Institute … - 2013
We apply the linearized present value model, which allows the log rent-price ratio to be decomposed into the expected present value of all future real interests rates, real housing premia, and real rent growth, to the housing market in 23 U.S. metropolitan areas from 1978 to 2011. Based on the...