Revisiting metropolitan house price-income relationships

Elias Oikarinen; Steven C. Bourassa; Martin Hoesli; Janne Engblom

doi:10.1016/j.jhe.2023.101946

Revisiting metropolitan house price-income relationships

Elias Oikarinen^*, Steven C. Bourassa, Martin Hoesli, Janne Engblom

^*Tämän työn vastaava kirjoittaja

Tutkimustuotos: Lehtiartikkeli › Article › Scientific › vertaisarvioitu

5 Sitaatiot (Scopus)

51 Lataukset (Pure)

Abstrakti

We explore long-term patterns of the house price-income relationship across the 70 largest U.S. metropolitan areas. In line with a standard spatial equilibrium model, our empirical findings indicate that regional house price-income ratios are typically not stable, even over the long run. In contrast, panel regression models that relate house prices to aggregate personal income and allow for regional heterogeneity yield stationary long-term relationships in most areas. The house price-income relationship varies significantly across locations, underscoring the importance of using estimation techniques that allow for spatial heterogeneity. The substantial regional differences are closely related to the elasticity of housing supply.

Alkuperäiskieli	Englanti
Artikkeli	101946
Sivumäärä	21
Julkaisu	Journal of Housing Economics
Vuosikerta	61
DOI - pysyväislinkit	https://doi.org/10.1016/j.jhe.2023.101946
Tila	Julkaistu - syysk. 2023
OKM-julkaisutyyppi	A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

YK:n kestävän kehityksen tavoitteet

Tämä tuotos edistää seuraavia kestävän kehityksen tavoitteita:

Pääsy asiakirjaan

10.1016/j.jhe.2023.101946Lisenssi: CC BY

1-s2.0-S1051137723000335-mainFinal published version, 5,3 MBLisenssi: CC BY

Muut tiedostot ja linkit

Linkki julkaisuun Scopuksessa

Smartland: Kestävää kaupungistumista maankäytön ohjauksen keinoin, 2. jakso
Oikarinen, E. (Vastuullinen tutkija)
01/09/2022 → 31/08/2025
Projekti: Academy of Finland: Strategic research funding

Siteeraa tätä

@article{15a3bae799064b578e55fab4ed142f68,

title = "Revisiting metropolitan house price-income relationships",

abstract = "We explore long-term patterns of the house price-income relationship across the 70 largest U.S. metropolitan areas. In line with a standard spatial equilibrium model, our empirical findings indicate that regional house price-income ratios are typically not stable, even over the long run. In contrast, panel regression models that relate house prices to aggregate personal income and allow for regional heterogeneity yield stationary long-term relationships in most areas. The house price-income relationship varies significantly across locations, underscoring the importance of using estimation techniques that allow for spatial heterogeneity. The substantial regional differences are closely related to the elasticity of housing supply.",

keywords = "House prices, Personal income, Regional heterogeneity, Spatial equilibrium, Supply elasticity",

author = "Elias Oikarinen and Bourassa, {Steven C.} and Martin Hoesli and Janne Engblom",

note = "Funding Information: For helpful comments, we thank the editor Jeff Zabel and two anonymous reviewers, as well as Christian Hilber, Simon Lapointe and Oskari V{\"a}h{\"a}maa, and participants at the International AREUEA conference in Amsterdam, ARES conference in San Diego, ERSA conference in Cork, ERES conference in Delft, Annual Meeting of the Finnish Economic Association, and research seminar at the University of Cambridge. We also thank Andrew VanValin for preparing the maps. This work was supported by the Strategic Research Council at the Academy of Finland (first author; decision numbers 352450 and 352451) and the West-Finland Housing Association of Public Utility. Funding Information: For helpful comments, we thank the editor Jeff Zabel and two anonymous reviewers, as well as Christian Hilber, Simon Lapointe and Oskari V{\"a}h{\"a}maa, and participants at the International AREUEA conference in Amsterdam, ARES conference in San Diego, ERSA conference in Cork, ERES conference in Delft, Annual Meeting of the Finnish Economic Association, and research seminar at the University of Cambridge. We also thank Andrew VanValin for preparing the maps. This work was supported by the Strategic Research Council at the Academy of Finland (first author; decision numbers 352450 and 352451 ) and the West-Finland Housing Association of Public Utility . Publisher Copyright: {\textcopyright} 2023 The Author(s)",

year = "2023",

month = sep,

doi = "10.1016/j.jhe.2023.101946",

language = "English",

volume = "61",

journal = "Journal of Housing Economics",

issn = "1051-1377",

publisher = "Elsevier",

}

TY - JOUR

T1 - Revisiting metropolitan house price-income relationships

AU - Oikarinen, Elias

AU - Bourassa, Steven C.

AU - Hoesli, Martin

AU - Engblom, Janne

N1 - Funding Information: For helpful comments, we thank the editor Jeff Zabel and two anonymous reviewers, as well as Christian Hilber, Simon Lapointe and Oskari Vähämaa, and participants at the International AREUEA conference in Amsterdam, ARES conference in San Diego, ERSA conference in Cork, ERES conference in Delft, Annual Meeting of the Finnish Economic Association, and research seminar at the University of Cambridge. We also thank Andrew VanValin for preparing the maps. This work was supported by the Strategic Research Council at the Academy of Finland (first author; decision numbers 352450 and 352451) and the West-Finland Housing Association of Public Utility. Funding Information: For helpful comments, we thank the editor Jeff Zabel and two anonymous reviewers, as well as Christian Hilber, Simon Lapointe and Oskari Vähämaa, and participants at the International AREUEA conference in Amsterdam, ARES conference in San Diego, ERSA conference in Cork, ERES conference in Delft, Annual Meeting of the Finnish Economic Association, and research seminar at the University of Cambridge. We also thank Andrew VanValin for preparing the maps. This work was supported by the Strategic Research Council at the Academy of Finland (first author; decision numbers 352450 and 352451 ) and the West-Finland Housing Association of Public Utility . Publisher Copyright: © 2023 The Author(s)

PY - 2023/9

Y1 - 2023/9

N2 - We explore long-term patterns of the house price-income relationship across the 70 largest U.S. metropolitan areas. In line with a standard spatial equilibrium model, our empirical findings indicate that regional house price-income ratios are typically not stable, even over the long run. In contrast, panel regression models that relate house prices to aggregate personal income and allow for regional heterogeneity yield stationary long-term relationships in most areas. The house price-income relationship varies significantly across locations, underscoring the importance of using estimation techniques that allow for spatial heterogeneity. The substantial regional differences are closely related to the elasticity of housing supply.

AB - We explore long-term patterns of the house price-income relationship across the 70 largest U.S. metropolitan areas. In line with a standard spatial equilibrium model, our empirical findings indicate that regional house price-income ratios are typically not stable, even over the long run. In contrast, panel regression models that relate house prices to aggregate personal income and allow for regional heterogeneity yield stationary long-term relationships in most areas. The house price-income relationship varies significantly across locations, underscoring the importance of using estimation techniques that allow for spatial heterogeneity. The substantial regional differences are closely related to the elasticity of housing supply.

KW - House prices

KW - Personal income

KW - Regional heterogeneity

KW - Spatial equilibrium

KW - Supply elasticity

UR - http://www.scopus.com/inward/record.url?scp=85163167498&partnerID=8YFLogxK

U2 - 10.1016/j.jhe.2023.101946

DO - 10.1016/j.jhe.2023.101946

M3 - Article

AN - SCOPUS:85163167498

SN - 1051-1377

VL - 61

JO - Journal of Housing Economics

JF - Journal of Housing Economics

M1 - 101946

ER -

Revisiting metropolitan house price-income relationships

Abstrakti

YK:n kestävän kehityksen tavoitteet

Pääsy asiakirjaan

Muut tiedostot ja linkit

Sormenjälki

Projektit

Smartland: Kestävää kaupungistumista maankäytön ohjauksen keinoin, 2. jakso

Siteeraa tätä