Household tenure choice and housing price volatility under a binding home-purchase limit policy constraint

Jiawei Chen; Eddie Chi-Man Hui; Michael J. Seiler; Hong Zhang

doi:10.1016/j.jhe.2018.06.004

Household tenure choice and housing price volatility under a binding home-purchase limit policy constraint

Jiawei Chen, Eddie Chi-Man Hui, Michael J. Seiler^*, Hong Zhang

^*Corresponding author for this work

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

14 Citations (Scopus)

Abstract

This study establishes a dynamic search-matching model with the home ownership market and rental markets unified within a single framework, against the background of China's home-purchase limit policy. We analyze the dynamic responses of household tenure choice, housing prices and market liquidity to a demographic shock. Our results show that, although the home-purchase limit policy can inhibit housing prices in the current period, the positive shock from demographic changes immediately triggers growth in rents and eventually leads to escalation in housing prices in subsequent periods. © 2018

Original language	English
Pages (from-to)	124-134
Journal	Journal of Housing Economics
Volume	41
DOIs	https://doi.org/10.1016/j.jhe.2018.06.004
Publication status	Published - 1 Sept 2018
Externally published	Yes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

Research Keywords

Home prices
Home-purchase limit policy
Household tenure choice
Search-matching model

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10.1016/j.jhe.2018.06.004

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title = "Household tenure choice and housing price volatility under a binding home-purchase limit policy constraint",

abstract = "This study establishes a dynamic search-matching model with the home ownership market and rental markets unified within a single framework, against the background of China's home-purchase limit policy. We analyze the dynamic responses of household tenure choice, housing prices and market liquidity to a demographic shock. Our results show that, although the home-purchase limit policy can inhibit housing prices in the current period, the positive shock from demographic changes immediately triggers growth in rents and eventually leads to escalation in housing prices in subsequent periods. {\textcopyright} 2018",

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AU - Chen, Jiawei

AU - Hui, Eddie Chi-Man

AU - Seiler, Michael J.

AU - Zhang, Hong

N1 - Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

PY - 2018/9/1

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N2 - This study establishes a dynamic search-matching model with the home ownership market and rental markets unified within a single framework, against the background of China's home-purchase limit policy. We analyze the dynamic responses of household tenure choice, housing prices and market liquidity to a demographic shock. Our results show that, although the home-purchase limit policy can inhibit housing prices in the current period, the positive shock from demographic changes immediately triggers growth in rents and eventually leads to escalation in housing prices in subsequent periods. © 2018

AB - This study establishes a dynamic search-matching model with the home ownership market and rental markets unified within a single framework, against the background of China's home-purchase limit policy. We analyze the dynamic responses of household tenure choice, housing prices and market liquidity to a demographic shock. Our results show that, although the home-purchase limit policy can inhibit housing prices in the current period, the positive shock from demographic changes immediately triggers growth in rents and eventually leads to escalation in housing prices in subsequent periods. © 2018

KW - Home prices

KW - Home-purchase limit policy

KW - Household tenure choice

KW - Search-matching model

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DO - 10.1016/j.jhe.2018.06.004

M3 - RGC 21 - Publication in refereed journal

SN - 1051-1377

VL - 41

SP - 124

EP - 134

JO - Journal of Housing Economics

JF - Journal of Housing Economics

ER -

Household tenure choice and housing price volatility under a binding home-purchase limit policy constraint

Abstract

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Research Keywords

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