Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210156
Authors: 
Aastveit, Knut Are
Albuquerque, Bruno
Anundsen, André
Year of Publication: 
2019
Series/Report no.: 
Working Paper No. 8/2019
Abstract: 
Recent developments in US house prices mirror those of the 1996-2006 boom, but the recovery in construction activity has been weak. Using data for 254 US metropolitan areas, we show hat housing supply elasticities have fallen markedly in recent years. Housing supply elasticities have declined more in areas where land-use regulation has tightened the most, and in areas that experienced the sharpest housing busts. A lowering of the housing supply elasticity implies a strengthened price responsiveness to demand shocks, whereas quantity reacts less. Consistent with this, we find that an expansionary monetary policy shock has a considerably stronger effect on house prices during the recent recovery than during the previous housing boom. At the same time, building permits respond less.
Subjects: 
house prices
heterogeneity
housing supply elasticities
monetary policy
JEL: 
C23
E32
E52
R31
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-094-8
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.no
Document Type: 
Working Paper
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