Why are housing markets so prone to boom-bust cycles? The mortgage market structure prior to the Savings and Loan crisis contributed to the volatility in real housing activity which, in turn, amplified the volatility in housing prices. The subsequent development of a national, market-based...

The collapse of the housing boom led to an unprecedented number of homeowners who are “underwater,” that is, owe more on their mortgage than their homes are worth. These homeowners cannot move without incurring significant losses on their homes, possibly causing a “lock-in” effect...

Household formation has slowed sharply since the onset of the housing and mortgage crisis, leaving millions doubled-up with family members or non-family housemates. The sustained low rate of household formation has generated an unprecedented level of pent-up demand for housing. At the same time,...

Demographics and population growth are among the most important factors affecting real estate markets. Differences in population growth between U.S. metros are driven largely by domestic migration patterns.What explains migration patterns, and can this help anticipate future conditions in...

Cash holdings of nonfinancial firms range widely, and are related to firm size, industry and access to the public bond market. Cash holdings are positively correlated with agency proxies, suggesting that firms that cannot borrow easily due to agency problems hold greater cash stocks--perhaps as...

The transition to a lower rate of home ownership resulted in large flows of households into rental properties. Many of these households chose to rent single family properties, both because of the different characteristics of a single family versus a multifamily property, but also because the...

This study examines the demographic and financial determinants of housing choices of older Americans, and how they have changed over the past several decades. Using logistic regressions with the Panel Study of Income Dynamics (PSID), a nationally representative longitudinal survey from 1968 to...