Housing Dynamics without Homeowners. The Role of I

Carlos Garriga (), Athena Tsouderou and Pedro Gete
Additional contact information
Athena Tsouderou: IE Business School

No 1407, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: This paper documents the arrival of institutional investors in the U.S. housing market and studies their dynamic real effects. Using an instrumental variable approach we show that investors initially caused increases in housing prices and rents, mostly in bottom tier and single-family segments of the market. Investors brought liquidity and stimulated construction causing decreases in prices and rents over time. Thus, investors initially lowered housing affordability to later increase it. We also uncover a new fact post-financial crisis: housing prices have decoupled from homeownership in most MSAs in the U.S., as in many advanced economies. The presence of investors decouples housing dynamics from homeownership.

Date: 2019
New Economics Papers: this item is included in nep-ban and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2019/paper_1407.pdf (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:red:sed019:1407

Access Statistics for this paper

More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().