Changing Supply Elasticities and Regional Housing Booms

Arbeitspapier

Recent developments in US house prices mirror those of the 1996-2006 boom, but the recovery in construction activity has been weak. Using data for 254 US metropolitan areas, we show hat housing supply elasticities have fallen markedly in recent years. Housing supply elasticities have declined more in areas where land-use regulation has tightened the most, and in areas that experienced the sharpest housing busts. A lowering of the housing supply elasticity implies a strengthened price responsiveness to demand shocks, whereas quantity reacts less. Consistent with this, we find that an expansionary monetary policy shock has a considerably stronger effect on house prices during the recent recovery than during the previous housing boom. At the same time, building permits respond less.

Angaben zum Objekt

• Sprache: Englisch
• ISBN: 978-82-8379-094-8

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 8/2019

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Business Fluctuations; Cycles ; Monetary Policy ; Housing Supply and Markets
• Thema: house prices ; heterogeneity ; housing supply elasticities ; monetary policy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Aastveit, Knut Are ; Albuquerque, Bruno ; Anundsen, André
• Ereignis: Veröffentlichung
• (wer): Norges Bank
• (wo): Oslo
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/210156
• Letzte Aktualisierung: 12.07.2024, 13:22 MESZ