Data and Code for: "The Sensitivity of Housing Demand to Financing Conditions: Evidence from a Survey"

Principal Investigator(s): View help for Principal Investigator(s) Andreas Fuster, Swiss National Bank; Basit Zafar, Arizona State University

Version: View help for Version V1

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Project Citation:

Fuster, Andreas, and Zafar, Basit. Data and Code for: “The Sensitivity of Housing Demand to Financing Conditions: Evidence from a Survey.” Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-10-15. https://doi.org/10.3886/E117041V1

Project Description

Summary:

Measuring the sensitivity of housing demand to mortgage rates and available leverage is challenging because there is generally no exogenous variation in these variables. This paper circumvents this issue by designing a strategic survey in which respondents report their willingness to pay (WTP) for a home under different financing scenarios. Relaxation of down payment constraints, or an exogenous increase in non-housing wealth, has large effects on WTP, especially for poorer and more credit-constrained households. However, changing the mortgage rate has only moderate effects on WTP. These findings have implications for theoretical models of house price determination and for policy.

Scope of Project

Subject Terms: housing demand; mortgage rates; down payment requirements; user cost model; household survey

JEL Classification:
      E44 Financial Markets and the Macroeconomy
      G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
      R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand

Geographic Coverage: USA

Time Period(s): 2014 – 2014

Collection Date(s): 2/2014 – 2/2014

Universe: Households in the respondent panel of the Federal Reserve Bank of New York's Survey of Consumer Expectations.

Data Type(s): survey data

Methodology

Unit(s) of Observation: Individuals

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Published Versions

V1 [2022-10-15]

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