Externalities of residential property flipping

Li, Lingxiao; Yavaş, Abdullah; Zhu, Bing

doi:10.1111/1540-6229.12413

Cited by 4 publications

(3 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Of the 62,140 transactions in our sample, 3,302 occurred within 2 years. The proportion of 5.31% is larger than the corresponding ratio (3.13% = 3,133/100,076) in the paper ofLi et al (2023) which using the dataset of residential property transactions in Clark County, Nevada in the USA for the period 2003-2013.…”

mentioning

confidence: 56%

“…Furthermore, Wong et al (2022) find that buying and reselling within three months produces a gross return of 6% above the market. Li et al (2023) investigate the externalities of residential property flipping and find that flippers impose a significant positive impact on the price of neighboring nonflipped properties in an up market but a significant negative effect in a down market. Such a procyclical impact of flipping activity contributes to the volatility of housing prices and thus increases the likelihood of a mortgage crisis.…”

Section: Housing Transaction Hotspots and Housing Marketmentioning

confidence: 99%

“…Most flippers choose the location of property and time of investment and resell it when the housing price rises promptly (Yilmaz, 2014). Previous studies have indicated that short-term flipping in the housing market causes a boom in housing transactions and thus rapidly driving housing prices up, which is not conducive to the sound development of the housing market (Leung & Tse, 2017;Li et al, 2023). However, fewer studies have concerned the spatial content of housing flipping and examined its impact on housing prices.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Effects of Transaction Hotspots and Flipping Hotspots on Housing Prices

Hsieh,

Yang

2024

International Journal of Strategic Property Management

View full text Add to dashboard Cite

In contrast to much of the literature that focuses on the issue of spatial dependence in housing price research, this study addresses the spatial aggregation of housing transactions and analyzes the effects of transaction hotspots and short-term flipping hotspots on housing prices by using real housing transaction data in Taipei City, Taiwan. The empirical results show that after controlling for the effects of spatial dependence and individual housing attributes, the impact of transaction hotspot areas on housing prices is significantly negative, while the impact of flipping hotspot areas on housing prices is significantly positive. The results verify that the key to driving up housing prices lies in flipping activities. Furthermore, the results of the spatial quantile regression model show that low-priced residential properties are more sensitive to the spatial concentration of housing transactions and flipping transactions in the housing market. Our results have implications for the government’s policy intending to control hot trade volumes to cool skyrocketing housing prices in a booming housing market. It is suggested that the government should pay attention to restraining short-term flipping activities in the housing market rather than setting constrains on housing transactions.

show abstract

mentioning

confidence: 56%

Section: Housing Transaction Hotspots and Housing Marketmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Effects of Transaction Hotspots and Flipping Hotspots on Housing Prices

Hsieh,

Yang

2024

International Journal of Strategic Property Management

View full text Add to dashboard Cite

show abstract

Effects of House Flips on Local Housing Transactions

Yang

2023

Journal of Housing Research

View full text Add to dashboard Cite

How many houses should one own?: A subsidiarity and distributist‐based critique of real estate investors accumulation of houses

Gustafson

2024

Business and Society Review

View full text Add to dashboard Cite

Distributivism holds that private property should be widely distributed among as many as possible and that such a distribution best serves the common good. This paper applies a distributist approach rooted in subsidiarity to the contemporary issue of the unaffordability of single‐family homes and the impact of investors buying up more single‐family homes, increasing their own wealth at the expense of typical home buyers. Here, we will first consider multiple factors in the housing “crisis,” then highlight the impact of investors on the market. Second, we will consider a critique and analysis of the situation from a distributist perspective, rooted in principles of private property, solidarity, dignity, and subsidiarity (particularly turning to G.K. Chesterton's view on the importance of home). Due consideration is given to some objections to such a distributist critique, with response. Finally, several examples of proposals and implemented practices are provided to discourage this growing trend concerning the concentration of ownership of housing by investors and to better enable homeownership by families.

show abstract

Externalities of residential property flipping

Cited by 4 publications

References 38 publications

The Effects of Transaction Hotspots and Flipping Hotspots on Housing Prices

The Effects of Transaction Hotspots and Flipping Hotspots on Housing Prices

Effects of House Flips on Local Housing Transactions

How many houses should one own?: A subsidiarity and distributist‐based critique of real estate investors accumulation of houses

Contact Info

Product

Resources

About