What is holding back housing?
- 57 Downloads
There are two major factors constraining the homeownership rate today: limited supply relative to net household formation and restricted credit availability. In this paper, we carefully document each of these factors, arguing that is is very difficult to fix the supply issues, as so much of the problem is local zoning laws, while steps can be taken to fix the credit availability issues. The supply/demand imbalance is currently the more significant of the two problems, as it places upward pressure on both home prices and rents.
KeywordsHousing Housing supply Mortgage credit Zoning
- Bricker, Jesse, Lisa J. Dettling, Alice Henriques, Joanne W. Hsu, Lindsay Jacobs, Kevin B. Moore, Sarah Pack, et al. 2017. Changes in US Family Finances From 2013 to 2016: Evidence From the Survey of Consumer Finances. Washington, DC: Board of Governors of the Federal Reserve System.Google Scholar
- Davis, Morris A., and Jonathan Heathcote. 2007. The Price and Quantity of Residential Land in the United States. Journal of Monetary Economics 54 (8): 2595–2620; data located at Land and Property Values in the U.S., Lincoln Institute of Land Policy, http://www.lincolninst.edu/resources/.
- Eggers, Frederick J., and Fourad Moumen. 2016. American Housing Survey, Components of Inventory Change: 2011–2013. Washington, DC: US Department of Housing and Urban Development, Office of Policy Development and Research. Data from earlier reports also used in the calculations; https://www.huduser.gov/portal/datasets/cinch/cinch13/cinch11-13.pdf.
- Emrath, Paul. 2016. Government Regulation in the Price of a New Home. Washington, DC: National Association of Home Builders. http://www.nahbclassic.org/generic.aspx?sectionID=734&genericContentID=250611&channelID=311&_ga=1.154188152.1111877392.142229917.
- Ganong, Peter, and Daniel Shoag. 2015. Why Has Regional Income Convergence in the U.S. Declined?. Cambridge, MA: Harvard University.Google Scholar
- Goodman, Laurie S. 2017. Quantifying the Tightness of Mortgage Credit and Assessing Policy Actions. Boston College Journal of Law and Social Justice 37 (2): 235–265.Google Scholar
- Kaul, Karan, Laurie Goodman, Alanna McCargo, and Todd M. Hill. 2018. Reforming the FHA’s Foreclosure and Conveyance Processes. Washington, DC: Urban Institute.Google Scholar