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  3. American Economic Review
  4. April 2015
  5. The Housing Market(s) of San Diego

The Housing Market(s) of San Diego

  • Tim Landvoigt
  • Monika Piazzesi
  • Martin Schneider
American Economic Review
vol. 105, no. 4, April 2015
(pp. 1371-1407)
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Abstract

This paper uses an assignment model to understand the cross section of house prices within a metro area. Movers' demand for housing is derived from a life-cycle problem with credit market frictions. Equilibrium house prices adjust to assign houses that differ by quality to movers who differ by age, income, and wealth. To quantify the model, we measure distributions of house prices, house qualities, and mover characteristics from micro-data on San Diego County during the 2000s boom. The main result is that cheaper credit for poor households was a major driver of prices, especially at the low end of the market. (JEL D14, D91, R21, R31)

Citation

Landvoigt, Tim, Monika Piazzesi, and Martin Schneider. 2015. "The Housing Market(s) of San Diego." American Economic Review, 105 (4): 1371-1407. DOI: 10.1257/aer.20111662

Additional Materials

JEL Classification

  • D14 Household Saving; Personal Finance
  • D15 Intertemporal Household Choice; Life Cycle Models and Saving
  • R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
  • R31 Housing Supply and Markets