Are Home Prices the Next Bubble

摘要: The strong rise in home prices since the mid-1990s has raised concerns over a possible bubble housing market and effect of sharp price decline on U.S. economy. This article assesses two measures frequently cited to support - rising price-to-income ratio declining rent-to-price finds be flawed conclusions drawn from them unpersuasive. In particular, do not fully account for effects nominal mortgage interest rates fail use appropriate indexes. authors also estimate structural model find that aggregate are inconsistent with long-run demand fundamentals. Accordingly, they conclude fundamentals enough explain recent path no exists. Nevertheless, weakening could have an impact values east west coasts, where new supply appears relatively inelastic. However, these regions typically been volatile, previous declines had sizable negative overall