A1 Refereed original research article in a scientific journal

U.S. metropolitan house price dynamics




AuthorsElias Oikarinen, Steven C Bourassa, Martin Hoesli, Janne Engblom

PublisherElsevier

Publication year2018

JournalJournal of Urban Economics

Volume105

First page 54

Last page69

Number of pages16

ISSN0094-1190

eISSN1095-9068

DOIhttps://doi.org/10.1016/j.jue.2018.03.001(external)

Web address https://doi.org/10.1016/j.jue.2018.03.001(external)

Self-archived copy’s web addresshttps://research.utu.fi/converis/portal/detail/Publication/30403053(external)


Abstract

Using data for 70 U.S. metropolitan areas, this study explores spatial heterogeneity in house price dynamics. We use recent advances in panel econometrics that allow for spatial heterogeneity, cross-sectional dependence, and non-stationary but cointegrated data. We test for spatial differences and analyze the relationship between the price elasticity of housing supply and the income elasticity of prices, as well as bubble size and duration. The long-term elasticity of house prices with respect to aggregate personal income averages 0.81, but varies considerably across metropolitan areas. The long-term income elasticity generally is greater in the more supply-inelastic metropolitan areas, and we show that bubble size and duration are inversely related to supply elasticity. Also short-term momentum and reversion dynamics show substantial spatial heterogeneity.


Downloadable publication

This is an electronic reprint of the original article.
This reprint may differ from the original in pagination and typographic detail. Please cite the original version.





Last updated on 2024-26-11 at 23:41