Rethinking the Federal Bias Toward Homeownership

Glaeser, Edward L.

doi:10.2139/ssrn.1914468

Cited by 24 publications

(29 citation statements)

References 34 publications

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“…First, the result could be the true causal effect, so that in multi‐storey buildings, the homeowners' net effect on the neighborhood amenity level and house prices is indeed negative (e.g.,

δ > 0

and

α < 0

). One possible mechanism is outlined in Linneman (1986), Glaeser and Shapiro (), and Glaeser (). Multiple owners in a building create a common‐pool problem in investment decisions concerning building‐specific projects, and in neighborhoods with high homeownership rates, buildings could be in worse conditions.…”

Section: Resultsmentioning

confidence: 99%

“…Furthermore, residents in a multi‐unit building face a common‐pool problem because major maintenance problems are building‐specific, not unit‐specific (Linneman, ; Glaeser and Shapiro, ; Glaeser, ). The owners of individual units in a multi‐unit building have an incentive to free‐ride at the expense of other owners in the building when it comes to investments in common facilities and building maintenance.…”

Section: Econometric Modelmentioning

confidence: 99%

“…Thus, if there are economies of scale, we should expect institutional landlords to own big buildings rather than many small ones for a given amount of investment in real estate. 16 Furthermore, residents in a multi-unit building face a common-pool problem because major maintenance problems are building-specific, not unitspecific (Linneman, 1985;Glaeser and Shapiro, 2003;Glaeser, 2011). The owners of individual units in a multi-unit building have an incentive to freeride at the expense of other owners in the building when it comes to investments in common facilities and building maintenance.…”

Section: Instrument Choice and Validitymentioning

confidence: 99%

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Do Urban Neighborhoods Benefit from Homeowners? Evidence from Housing Prices

Kortelainen

Saarimaa

2014

Scandinavian J Economics

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Homeownership is heavily subsidized in most countries. The adverse effects of this policy on economic efficiency and income distribution are well documented in the economics literature. The main argument in favor of subsidizing homeownership is that it creates positive externalities that offset these adverse effects. In this paper, we test whether homeowners create positive externalities that capitalize into housing prices in multi‐storey buildings. Using semi‐parametric hedonic regressions with and without instrumental variables, we find no evidence of positive externalities, although the results with instrumental variables are somewhat imprecise. This result is robust to several sensitivity checks and to a relaxation of the identification assumptions of our instrument using set identification.

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“…First, the result could be the true causal effect, so that in multi‐storey buildings, the homeowners' net effect on the neighborhood amenity level and house prices is indeed negative (e.g.,

δ > 0

and

α < 0

Section: Resultsmentioning

confidence: 99%

Section: Econometric Modelmentioning

confidence: 99%

Section: Instrument Choice and Validitymentioning

confidence: 99%

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Do Urban Neighborhoods Benefit from Homeowners? Evidence from Housing Prices

Kortelainen

Saarimaa

2014

Scandinavian J Economics

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“…11 Another reason for the low level of additional homebuilding rests in the stability-oriented German mortgage market. German housing loans are still characterized by comparatively low loan-to-value ratios, long-term fixed interest rates, and practically no secondary mortgages (Maennig, 2012 In stark contrast to other countries which treat homeownership more favorably (see, e.g., Glaeser (2011) for the US), the German tax code neither allows mortgage interest deduction nor the deduction of depreciation or running expenses.…”

Section: National Trends In New Homebuildingmentioning

confidence: 99%

House prices, housing development costs, and the supply of new single-family housing in German counties and cities

Lerbs

2012

Proceedings of the 19th Annual European Real Estate Society Conference - Edinburgh, Scotland

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The results suggest that both higher prices for existing homes and recent increases in development costs are positively associated with local single-family home permit rates. Instead, higher levels of development costs turn out to dampen construction activity. The average local price elasticity of new single-family home supply is considerably less than one, with surprising differences across the urban hierarchy.

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“…In some countries, e.g., in the USA, it "is often seen as an integral part of the American dream, and encouraging homeownership has historically been an important feature of U.S. public policy", see Haughwout et al (2010). Glaeser (2011) points to federal policies such as home mortgage deductions as well as local regulations that prohibit tall buildings. The latter boosts the HOR because rental units are much more likely to be in multifamily structures than in single houses.…”

Section: Introductionmentioning

confidence: 99%

Can Internet Ads Serve as an Indicator of Homeownership Rates?

Kholodilin

Mense²

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractIn this paper, we propose an indicator of the homeownership rate based on Internet ads offering the housing for rent and sale. We constructed the HOR estimate using the number of ads in four different markets (flats for rent, flats for sale, houses for rent, and houses for sale). Our HOR indicator was tested using data of German NUTS1 and planning (ROR) regions. The correlation between our estimate of the HOR and the alternative HOR figures varies between 0.834 and 0.874 at NUTS1 level and is 0.761 at the ROR level. All correlation coefficients are statistically significant. Our HOR estimate is particularly highly correlated with the official HOR figures. Thus, it is shown that our Internet-based indices could serve as a good indicator of the homeownership rate in German regions.

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Rethinking the Federal Bias Toward Homeownership

Cited by 24 publications

References 34 publications

Do Urban Neighborhoods Benefit from Homeowners? Evidence from Housing Prices

Do Urban Neighborhoods Benefit from Homeowners? Evidence from Housing Prices

House prices, housing development costs, and the supply of new single-family housing in German counties and cities

Can Internet Ads Serve as an Indicator of Homeownership Rates?

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