Abstract
Abstract
This paper documents an unprecedented decrease in young homeownership since the Great Recession driven by regions with high house prices. Using a panel of U.S. metro areas, I calibrate an equilibrium spatial macro-finance model with overlapping generations of mobile households. The dynamics of regional housing markets is explained by an aggregate credit contraction with heterogeneous local impacts rather than by local shocks. Lower millennial income and wealth amplify its effect. The impact of subsidies to first-time buyers is dampened, because they fail to stimulate regions that suffer from larger busts. Place-based subsidies achieve larger gains.
Publisher
Oxford University Press (OUP)
Subject
Economics and Econometrics,Finance,Accounting
Reference62 articles.
1. Borrowing constraints and homeownership;Acolin,;American Economic Review: Papers & Proceeding,2016
2. Loan origination and defaults in the mortgage crisis: The role of the middle class;Adelino,;Review of Financial Studies,2016
3. Credit rationing, income exaggeration, and adverse selection in the mortgage market;Ambrose,;Journal of Finance,2016
4. Reference dependence in the housing market;Andersen,;American Economic Review,2022
5. Sources of inaction in household finance: Evidence from the danish mortgage market;Andersen,;American Economic Review,2020
Cited by
5 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