Strobel, Johannes and Binh Nguyen Thanh, and Lee, Gabriel (2020) Effects of Macroeconomic Uncertainty and Labor Demand Shocks on the Housing Market. REAL ESTATE ECONOMICS, 48 (2). pp. 345-372. ISSN 1080-8620, 1540-6229
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This article shows that macroeconomic uncertainty affects the housing market in two significant ways. First, uncertainty shocks adversely affect housing prices but not the quantities that are traded. Controlling for a broad set of variables in fixed-effects regressions, we find that uncertainty shocks reduce both housing prices and median sales prices in the amount of 1.4% and 1.8%, respectively, but the effect is not statistically significant for the percentage changes of all homes sold. Second, when both uncertainty and local demand shocks are introduced, the effects of uncertainty on the housing market dominate that of local labor demand shocks on housing prices, median sale prices, the share of houses selling for a loss and transactions. The aforementioned effects are largest for the states that exhibit relatively high housing price volatilities, suggesting real options effects in the housing market during the times of high uncertainty.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | REAL OPTIONS; LAND PRICES; INVESTMENT; |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Immobilienökonomie (Prof. Dr. Gabriel Lee) Business, Economics and Information Systems > Institut für Immobilienenwirtschaft / IRE|BS > Lehrstuhl für Immobilienökonomie (Prof. Dr. Gabriel Lee) Business, Economics and Information Systems > Institut für Immobilienenwirtschaft / IRE|BS |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 23 Mar 2021 07:30 |
| Last Modified: | 23 Mar 2021 07:30 |
| URI: | https://pred.uni-regensburg.de/id/eprint/44500 |
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