The sensitivity of housing demand to mortgage rates and available leverage is key to understanding the effect of monetary and macroprudential policies on the housing market. However, since there is generally no exogenous variation in these variables that is independent of confounding factors...

Young Americans' residence choices have changed markedly over the past fifteen years, with recent cohorts entering the housing market at lower rates, and lingering much longer in parents' households. This paper begins with descriptive evidence on the residence choices of 1 percent of young...

Deficiencies of housing and urban infrastructures are heterogeneous in Brazil, making territorial analyses necessary. In this article we analyze data of the 2010 Census regarding "aglomerados subnormais" (AS), a national classification of census tracts that generally correspond to slums. We try...

The "Minha Casa Minha Vida" program (MCMV) started in 2009 and was afterwards elevated to the status of Brazilian housing policy. Since its creation the appearance of other alternatives for housing provision has been restricted. This paper performs a diagnosis of the recent housing policy in...

In this paper we analyze the social housing supply by "Minha Casa Minha Vida" (MCMV) program in Brazil, aimed at low-wage families (earning up to R$ 1,600 per month), as well as the housing shortage ("deficit habitacional") in a similar wage range. The location of MCMV's housing estates is...

Mortgages are prime examples of long-term nominal loans. As a result, under incomplete asset markets, monetary policy can affect household decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. These channels are distinct from the transmission through...

This paper uses a two-step procedure to analyze the long-run dynamics between real house prices and their fundamentals in Lima, Peru. In this framework, first a hedonic price index is calculated, and then used for estimating a quarterly vector error correction model over the period 1998-2014....

We use detailed micro data to document a causal response of local retail price to changes in house prices, with elasticities of 15%-20% across housing booms and busts. Notably, these price responses are largest in zip codes with many homeowners, and non-existent in zip codes with mostly renters....

Using a panel logit framework, the paper provides an estimate of the likelihood of a house price correction in 18 OECD countries. The analysis shows that a simple measure of the degree of house price overvaluation contains a lot of information about subsequent price reversals. Corrections are...

This paper examines the welfare cost of rare housing disasters characterized by large drops in house prices. I construct an overlapping generations general equilibrium model with recursive preferences and housing disaster shocks. The likelihood and magnitude of housing disasters are inferred...