Economic Research and Data
Features
- The Effect of Foreclosures on Nearby Housing Prices: Supply or Disamenity?
- Several studies have measured negative price effects of foreclosed residential properties on nearby property sales. However, these studies do not address which mechanism is responsible for these effects. I measure separate effects for different types of foreclosed properties and use these estimates to decompose the effects of foreclosures on nearby home prices into a component that is due to additional available housing supply and a component that is due to disamenity stemming from deferred maintenance or vacancy. I estimate that each extra unit of supply decreases prices within 250 feet by about 1.6% in low-vacancy-rate census tracts while the disamenity stemming from a foreclosed property is near zero. In high-vacancy-rate census tracts the story is reversed: each extra unit of foreclosure is associated with a disamenity effect of about −2% within 250 feet but no supply effect. (PDF)
- Where Does the Mortgage Market Go from Here?
- In the first quarter of 2010, it appeared that the mortgage market was running out of steam. Mortgage originations increased in the second quarter, however, demonstrating that there still is demand for mortgages. Read more
- Inflation: Soft but Stable?
- We have experienced a dramatic disinflation—a slowing in the growth rate of inflation—over the past couple of years. With most measures of inflation reporting in at very low rates, speculation abounds that disinflation will eventually give way to deflation. A quick glance at the most recent report on consumer prices might splash some cold water on that discussion. But then, a deeper dig through the report reveals details that might support continued low rates of inflation. Read more