Demographics, house prices and mortgage design

David Miles

No 35, Discussion Papers from Monetary Policy Committee Unit, Bank of England

Abstract: This paper develops a model of the housing market that takes account of population density to assess the impact of population changes on the value and size of the housing stock. The model implies that if population density is on an upward trajectory, rises in population and in incomes increasingly generate price responses and diminishing rises in the stock of housing. This has implications for the optimal structure of housing finance. It amkes equity financing of home purchase more desirable. The properties of hybrid debt-equity contracts for financing house purchase are explored.

Keywords: demographics; house prices; mortgage design; population density; housing; debt-equity; equity financing (search for similar items in EconPapers)
JEL-codes: J11 R31 R34 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2012-04-19
New Economics Papers: this item is included in nep-dem and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.bankofengland.co.uk/-/media/boe/files/ ... -and-mortgage-design Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mpc:wpaper:0035

Access Statistics for this paper

More papers in Discussion Papers from Monetary Policy Committee Unit, Bank of England Contact information at EDIRC.
Bibliographic data for series maintained by Bank of England Website ().