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Glaeser, Edward L. - 2007

Urban economists understand housing prices with a spatial equilibrium approach that assumes people must be indifferent across locations. Since the spatial no arbitrage condition is inherently imprecise, other economists have turned to different no arbitrage conditions, such as the prediction...

Persistent link: https://www.econbiz.de/10012464942

Liquidity Constraints and Housing Prices : Theory and Evidence from the VA Mortgage

Vigdor, Jacob L. - 2004

This paper employs a simple intertemporal model to show that presence of liquidity constraints can depress the price of a durable good below its net present rental value, regardless of the overall supply elasticity. The existence of price effects implies that the relaxation of liquidity...

Persistent link: https://www.econbiz.de/10012468080

Owner-Occupied Housing as a Hedge Against Rent Risk

Sinai, Todd - 2003

in house values. However, homeownership also provides a hedge against fluctuations in future rent payments. This paper … households so housing market risk actually increases homeownership rates and house prices. Further, the net effect of rent risk … on the demand for homeownership increases with a household's expected length of stay in its home, as the cumulative rent …

Persistent link: https://www.econbiz.de/10012469241

A New Spatial Hedonic Equilibrium in the Emerging Work-from-Home Economy?

Brueckner, Jan K.; Kahn, Matthew E.; Lindeman, Gary - National Bureau of Economic Research - 2021

This paper studies the impacts of work-from-home (WFH) in the housing market from both intercity and intracity perspectives. Our results confirm the theoretical prediction that WFH puts downward pressure on housing prices and rents in high-productivity counties, a result of workers starting to...

Persistent link: https://www.econbiz.de/10012496079