Affiliation:
1. Federal Reserve Bank of Cleveland
Abstract
In this Economic Commentary, we compare characteristics of the 2000-2006 house-price boom that preceded the Great Recession to the house-price boom that began in 2020 during the COVID-19 pandemic. These two episodes of high house-price growth have important differences, including the behavior of rental rates, the dynamics of housing supply and demand, and the state of the mortgage market. The absence of changes in fundamentals during the 2000s is consistent with the literature emphasizing house-price beliefs during this prior episode. In contrast to during the 2000s boom, changes in fundamentals (including rent and demand growth) played a more dominant role in the 2020s house-price boom.
Publisher
Federal Reserve Bank of Cleveland
Reference10 articles.
1. 1. Adelino, Manuel, Antoinette Schoar, and Felipe Severino. 2016. "Loan Originations and Defaults in the Mortgage Crisis: The Role of the Middle Class." Review of Financial Studies 29 (7): 1635. https://doi.org/10.1093/rfs/hhw018.
2. 2. Albanesi, Stefania, Giacomo DeGiorgi, and Jaromir Nosal. 2022. "Credit Growth and the Financial Crisis: A New Narrative." Journal of Monetary Economics 132 (November): 118-139. https://doi.org/10.1016/j.jmoneco.2022.09.001.
3. 3. Amaral, Francisco, Martin Dohmen, Sebastian Kohl, and Moritz Schularick. forthcoming. "Interest Rates and the Spatial Polarization of Housing Markets." American Economic Review: Insights. https://www.aeaweb.org/articles?id=10.1257/aeri.20220367.
4. 4. Foote, Christopher L., Kristopher S. Gerardi, and Paul S. Willen. 2012. "Why Did so Many People Make so Many Ex Post Bad Decisions: The Causes of the Foreclosure Crisis." In Rethinking the Financial Crisis, edited by Alan S. Blinder, Andrew W. Lo, and Robert M. Solow, 136-186. The Russell Sage Foundation and the Century Foundation: New York and Washington, D.C. http://nrs.harvard.edu/urn-3:HUL.InstRepos:10885504.
5. 5. Foote, Christopher L., Lara Loewenstein, and Paul S. Willen. 2021. "Cross-Sectional Patterns of Mortgage Debt during the Housing Boom: Evidence and Implications." The Review of Economic Studies 88 (1): 229-259. https://doi.org/10.1093/restud/rdaa034.
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献