Mortgage Supply and Housing Rents

Pedro Gete and Michael Reher

MPRA Paper from University Library of Munich, Germany

Abstract: We show that a contraction of mortgage supply after the Great Recession has increased housing rents. Our empirical strategy exploits heterogeneity in MSAs' exposure to regulatory shocks experienced by lenders over the 2010-2014 period. Tighter lending standards have increased demand for rental housing and have led to higher rents, depressed homeownership rates and an increase in rental supply. Absent the credit supply contraction, annual rent growth would have been 2.1 percentage points lower over 2010-2014 in MSAs where lending standards rose from their 2008 levels.

Keywords: Credit Supply; Homeownership; Mortgage Markets; Regulation; Rents. (search for similar items in EconPapers)
JEL-codes: E31 E32 E65 G2 G20 G21 G28 G29 R3 R31 R39 (search for similar items in EconPapers)
Date: 2017-11
New Economics Papers: this item is included in nep-ban, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Mortgage Supply and Housing Rents (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:82856

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