Our analysis produces three main findings for our sample: land prices in most areas increased between 2012 and 2017, land prices tended to rise faster than house prices, and land appreciated most rapidly in areas with relatively high density of structures.
Edward Pinto and Tobias Peter calculate the median home-price-to-income ratio for the 50 largest metropolitan areas for first-time homebuyers.
The impact of federal housing policy on housing demand and homeownership: Evidence from a quasi-experiment
In this paper, the authors exploit the Federal Housing Administration’s (FHA’s) surprise 50 basis point cut to its annual mortgage insurance premium in January 2015 to study the impact of federal housing policy and interest rates on housing demand for a population of households likely to be influenced by changes to policy.
With less than two weeks before leaving office, the Obama administration cut the FHA mortgage insurance premium. Only hours after the inauguration, the Trump administration indefinitely suspended the premium cut. Why this flurry of activity?
Because of a reliance on excessive leverage, US homeownership policy has failed to broaden homeownership access, failed to achieve wealth accumulation for low- and middle-income homeowners, and led to 11 to 12 million foreclosures since 1973.
Using new property-level data, the authors find that the change in the land share of house value during the boom was a significant predictor of the decline in house prices during the bust, highlighting the value of focusing on land in assessing house-price risk.
House prices and land prices under the microscope: a property-level analysis for the Washington, DC area
Our data show that land prices were more volatile than house prices during the recent boom/bust cycle. In areas where land was inexpensive in 2000, the land share of property value jumped during the boom, and this rise in the land
share was a useful predictor of the subsequent crash in house prices. These results highlight the value of focusing on land for assessing house-price risk.
The new research described in this Letter provides the first comprehensive estimate of how long it takes to plan commercial real estate projects in the United States. The results show that planning times are long, have increased over time, and are influenced by the local regulatory environment.