The Cape of Good Homes: Exchange Rate Depreciations, Foreign Demand and House Prices

Davids, Allan; Georg, Co-Pierre

doi:10.2139/ssrn.3349815

Cited by 5 publications

(2 citation statements)

References 13 publications

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“…Housing is an asset as well as an investment and the nature or identity of the buyers can influence the valuation of the asset, with broader societal implications (Garriga et al., 2020). This article contributes to a growing body of literature that examines the dynamics of the housing market, post the Great Recession (Cvijanovic & Spaenjers, 2018; Lambie‐Hanson et al., 2018, 2022) and affluent foreign and out‐of‐state investors' entry into the burgeoning rental housing market (Davids & Georg, 2019; DeFusco et al., 2018; Favilukis & Van Nieuwerburg, 2018).…”

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confidence: 99%

Corporate investors and the housing affordability crisis: Having wall street as your landlord

Camp Yeakey

2024

American J Econ Sociol

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Given the importance of housing affordability to one's social class standing, one's ability to afford decent, secure housing is not only important on an individual level, but impacts intergenerational im/mobility as well. The purpose of this research is threefold. First, it examines the recent trend in bulk housing purchases by corporate investors who turn those purchases into single family rental properties. In so doing, it discusses the implications for the population in general, but for marginalized population in perticular, that is, persons of color and those inthe lower socioeconomic strata of society. Second, this research examines a closely related housing phenomenon, condominium deconversion, where corporate investors purchase privately owned condominiums in bulk who turn them into rental units. Third, summary analysis and suggestions for future research as well as legislative and policy proposals to offset housing affordability conclude this research.

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Corporate investors and the housing affordability crisis: Having wall street as your landlord

Camp Yeakey

2024

American J Econ Sociol

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“…Moreover, Agarwal et al (2019), Albanesi et al (2022, Bayer et al (2021), and Ben-David ( 2011) study short-term investors (commonly known as flippers). Chinco and Mayer (2016), Cvijanović and Spaenjers (2021), Davids andGeorg (2020), andFavilukis andVan Nieuwerburgh (2021) analyze foreign and out-of-town investors. We move forward this literature by highlighting the overwhelming increase in the small-and medium-sized and local investors who buy through legal entities, and studying their real effects.…”

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The economic effects of real estate investors

Garriga

Gete

Tsouderou

2023

Real Estate Economics

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We show five new results about small‐ and medium‐sized real estate investors (SMREI) who participate through legal entities in US housing markets. First, SMREI have the largest growth across all cities post Great Recession, in contrast to Wall Street Landlords who concentrate in superstar cities. Second, SMREI increase house price growth and price‐to‐income ratio, especially in the bottom price tier. Third, this effect is reversed as investors trigger a medium‐run supply response. Fourth, in areas with a high supply elasticity, SMREI affect rents more than prices. Finally, SMREI change the composition of the housing stock in favor of multifamily units.

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Are institutional investors the culprit of rising global house prices?

Banti,

Phylaktis

2024

Real Estate Economics

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Taking advantage of the standard regulation of real estate investment trusts (REITs) around the world, we study the implications for housing markets of the entry of institutional investors in 57 cities in 15 countries for the period 2001–2022. We employ an IV approach based on the exogenous demand for REITs by pension funds triggered by changes to the retired population. We show that residential equity REIT capital flows push up multifamily house prices, and are associated with declining rents, potentially affecting households' homeownership versus renting decisions. Estimating a CS‐ECM model, we find that REITs exert long‐run effects on housing markets.

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The Cape of Good Homes: Exchange Rate Depreciations, Foreign Demand and House Prices

Cited by 5 publications

References 13 publications

Corporate investors and the housing affordability crisis: Having wall street as your landlord

Corporate investors and the housing affordability crisis: Having wall street as your landlord

The economic effects of real estate investors

Are institutional investors the culprit of rising global house prices?

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