Housing Inequality

David Albouy, Mike Zabek

Research output: Working paper

Abstract

Inequality in U.S. housing prices and rents both declined in the mid-20th century, even as home-ownership rates rose. Subsequently, housing-price inequality has risen to pre-War levels, while rent inequality has risen less. Combining both measures, we see inequality in housing consumption equivalents mirroring patterns in income across both space and time, according to an income elasticity of housing demand just below one. These patterns occur mainly within cities, and are not explained by observed changes in dwelling characteristics or locations. Instead, recent increases in housing inequality are driven most by changes in the relative value of locations, seen especially through land.
Original languageEnglish (US)
PublisherNational Bureau of Economic Research
DOIs
StatePublished - Jan 1 2016
Externally publishedYes

Publication series

NameWorking Paper Series
No.21916

Fingerprint Dive into the research topics of 'Housing Inequality'. Together they form a unique fingerprint.

Cite this