American Economic Review Vol. 105 No. 4 2015

The Housing Market (s) of San Diego

Tim Landvoigt¹; Monika Piazzesi²; Martin Schneider²

¹ McCombs School of Business, University of Texas at Austin, 1 University Station B6000, Austin, TX 78712 (e-mail: ) · ² Department of Economics, Stanford University, 579 Serra Mall, Stanford, CA 94305 (e-mail: ).

Abstract

This paper uses an assignment model to understand the cross section of house prices within a metro area. Movers’ demand for housing is derived from a life-cycle problem with credit market frictions. Equilibrium house prices adjust to assign houses that differ by quality to movers who differ by age, income, and wealth. To quantify the model, we measure distributions of house prices, house qualities, and mover characteristics from micro-data on San Diego County during the 2000s boom. The main result is that cheaper credit for poor households was a major driver of prices, especially at the low end of the market.

DOI

10.1257/aer.20111662

Volume

105

Issue

4

Pages

1371-1407

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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