Inflation and housing demand: A new perspective

Manchester, Joyce

doi:10.1016/0094-1190(87)90025-8

Cited by 23 publications

(15 citation statements)

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“…In addition, housing prices may fluctuate due to changes in the quality of housing demanded. Changes in housing quality reflect variation in size, style, and various housing amenities (Fleming and Nellis, 1982;Schwab, 1983;Hamilton and Schwab, 1985;Manchester, 1987). An index of regional housing quality is included in the current model to adjust for quality changes over time.…”

Section: Literature Reviewmentioning

confidence: 99%

“…For example, McAvinchey and Maclennan (1982) postulate that housing inflation rates may differ across regions due to: (1) variations in preferences for housing relative to other goods, (2) significant differences and spatial rigidity in the structure of demand and supply which may inhibit equilibrating flows of households and construction inputs, and (3) national economic conditions which may not diffuse equally or impact all regions simultaneously (p. 44). Thus, in addition to identifying the specific factors that influence housing prices, this study analyzes the geographic structure of housing markets across the United States.Comparisons are made among nine census regions using a reduced form housing price function of the type employed by Manchester (1987) and Singell and Lillydahl (1990). The study finds that while various regions respond in a similar fashion to certain national factors, such as mortgage rates; local economic and demographic factors, such as population, employment, and income, have unique effects across different regions.…”

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confidence: 99%

“…Comparisons are made among nine census regions using a reduced form housing price function of the type employed by Manchester (1987) and Singell and Lillydahl (1990). The study finds that while various regions respond in a similar fashion to certain national factors, such as mortgage rates; local economic and demographic factors, such as population, employment, and income, have unique effects across different regions.…”

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confidence: 99%

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The impact of interest rates, income, and employment upon regional housing prices

Reichert

1990

J Real Estate Finan Econ

110

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The objective of this article is to identify important differences in the way new housing prices react to local and national economic factors. The study finds that regional housing prices react uniformly to certain national economic factors, such as mortgage rates. On the other hand, local factors such as population shifts, employment, and income trends often have a unique impact on housing prices. The study rejects the hypothesis of a single national housing market in favor of one that allows for broad national trends to be superimposed upon unique regional markets.The cyclical nature of the U.S. housing market has been well documen*ed in the academic literature. The focus of most of the previous work has ccntcred on either national housmg market macroeconomic relationships or microeconomic housing conditions for specific urban areas. The focus of this article is unique in that it analyzes the determinants of new housing prices at the regional level using a combination of macroeconomic and microstructural factors. Others have also recognized the need for a regional perspective. For example, McAvinchey and Maclennan (1982) postulate that housing inflation rates may differ across regions due to: (1) variations in preferences for housing relative to other goods, (2) significant differences and spatial rigidity in the structure of demand and supply which may inhibit equilibrating flows of households and construction inputs, and (3) national economic conditions which may not diffuse equally or impact all regions simultaneously (p. 44). Thus, in addition to identifying the specific factors that influence housing prices, this study analyzes the geographic structure of housing markets across the United States.Comparisons are made among nine census regions using a reduced form housing price function of the type employed by Manchester (1987) and Singell and Lillydahl (1990). The study finds that while various regions respond in a similar fashion to certain national factors, such as mortgage rates; local economic and demographic factors, such as population, employment, and income, have unique effects across different regions. In terms of geographic market structure, the results suggest that policy makers and housing researchers should consider at least four broad geographic regions (Northeast, North Central, South, and West) when formulating housing policy.

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Section: Literature Reviewmentioning

confidence: 99%

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confidence: 99%

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confidence: 99%

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The impact of interest rates, income, and employment upon regional housing prices

Reichert

1990

J Real Estate Finan Econ

110

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“…Several models have examined the effect of macroeconomic aggregates on the housing sector such as Kearl (1979), Follain (1981), Schwab (1983), Arnott (1987), Manchester (1987), Schwartz (1988), Smith et al (1988), Harris (1989), Megbolugbe et al (1991), Dua and Smyth (1995), Hanushek and Quigley (1982), Baffoe-Bonnie (1998), Chen and Patel (1998) and Ewing and Wang (2002).…”

Section: Introductionmentioning

confidence: 99%

Analysis of Consumers’ Perceptions of Buying Conditions for Houses

Dua

2007

J Real Estate Finance Econ

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This paper examines the determinants of consumers' buying attitudes for houses. Data Generalized impulse responses show that shocks to each of the above variables have a predictable and permanent impact on buying attitudes. Furthermore, generalized variance decompositions suggest that both current and expected interest rates explain a large proportion of the variation in consumers' perceptions towards buying houses.Since consumers' attitudes towards buying houses are likely to be translated into actual purchases, this study shows that in order of importance, interest rates -both current and future -have the maximum impact on decisions to purchase houses followed by expectations of real disposable income.

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“…Finalmente, las expectativas de inflación también son un determinante de la demanda de vivienda (Manchester, 1987).…”

Section: Figura 1 Mercado De Vivienda Localunclassified