Housing prices and the savings of renters
Article Abstract:
The impact of housing prices on the net worth of young households is examined. Shifts in housing prices have the capacity to alter their saving behaviors given the fact that prospective homeowners are compelled to save for down payments. For the study, data from the 1984 26-city Panel Study of Income Dynamics for 25-to-34-year-olds are used. Results show that increases in housing prices have a quite significant positive effect on savings. Young renter households in cities with steep housing prices are found to have a higher net worth than those residing in cities with lower housing prices. The income of the households and the per capita income of the cities have been controlled for in this study. Implications and recommendations for further research are discussed.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1995
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A note on transactions costs, moving costs, and benefit measurement
Article Abstract:
Household moving decisions carry psychological costs which are not easy to quantify. Earlier studies show that the failure to make psychological considerations of gentrification leads to overestimates of neighborhood revitalization benefits. However, in the case of localized externalities, transactions and moving costs (TMC) can be measured without considering psychological bias. Benefit measurement for the abatement of localized externalities shows that both tenants and housing owners face TMCs, with owner-occupied housing having greater costs due to more possessions. The costs are generally financial and time costs. For tenants, these include out-of-pocket moving costs and search costs, while owners have additional expenses in the form of transaction costs.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1992
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Disequilibrium models of single family housing prices and transactions: the case of Chicago, 1972-1976
Article Abstract:
The number of single-family home sales and the prices on such sales in Chicago during the period from 1972 to 1976 form the data base for research into the short-side models of disequilibrium in intra-urban housing markets. Four disequilibrium models are discussed, especially with regard to price elasticity and demand elasticity, which are shown to be simultaneous estimation processes. The research indicates that price elasticity of the offering of single family homes is 2 to 1. The disequilibrium models are also shown to be superior to equilibrium models as illustrations of urban housing markets.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1986
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