Author: Jeanette Strøm Fjære

Andreas Benedictow, Erling Røed Larsen and Dag Martin Sundelius have written a new paper on “The Housing Phillips Curve”.

Abstract

Using a high-resolution housing transaction data set, we examine the relationship between price changes and the unsold rate in the Norwegian housing market within a Phillips curve framework. Compared to the classical labor market Phillips curve the housing Phillips curve displays a reversed causality, from price changes to the unsold rate. We propose a consistent model based on microfoundations in which households decide on the sequence of buying and selling, i.e. whether to hold two or zero houses in the transition period. Data on individual sellers and buyers support the hypothesis that the propensity to hold two houses is pro-cyclical.

The paper “Detecting Imbalances in House Prices: What Goes Up Must Come Down?” by André Anundsen (Housing Lab) was among the top 10% most downloaded papers published in Scandinavian Journal of Economics in 2018 and 2019.

The paper “Changing supply elasticities and regional housing booms” by Knut Are Aastveit (Norges Bank), Bruno Albuquerque (Bank of England) and André Anundsen (Housing Lab) was mentioned in an article by the Economist published 30 April:

America is getting worse at building new homes

Previously the paper has been mentioned in the following two articles by the Economist published 16 and 30 January:

How housing became the world’s biggest asset class

As wages grow across America, one state is left behind