Pub Date : 2025-09-01Epub Date: 2025-08-18DOI: 10.1016/j.jhe.2025.102090
Shu-hen Chiang , Sandy Suardi , Chien-Fu Chen
This study examines the spillover effects of a unified monetary policy on core and peripheral housing markets in the Euro Area, utilizing augmented spillover accounting techniques developed by Diebold and Yilmaz (2009). Our estimation results reveal significant core-peripheral differences: core countries experience stronger and more immediate spillovers from monetary policy, especially during the unconventional period following the 2008 global financial crisis and events such as the Russian invasion of Ukraine. In contrast, peripheral countries exhibit a slower, more moderate response, thereby remaining relatively insulated from policy-driven systemic risks. This underscores the varying impacts of monetary policy on housing stability across the Euro Area, highlighting the need for tailored policy responses.
{"title":"Navigating shifting tides: Time-varying monetary policy spillovers in core-peripheral housing markets in the Euro area","authors":"Shu-hen Chiang , Sandy Suardi , Chien-Fu Chen","doi":"10.1016/j.jhe.2025.102090","DOIUrl":"10.1016/j.jhe.2025.102090","url":null,"abstract":"<div><div>This study examines the spillover effects of a unified monetary policy on core and peripheral housing markets in the Euro Area, utilizing augmented spillover accounting techniques developed by Diebold and Yilmaz (2009). Our estimation results reveal significant core-peripheral differences: core countries experience stronger and more immediate spillovers from monetary policy, especially during the unconventional period following the 2008 global financial crisis and events such as the Russian invasion of Ukraine. In contrast, peripheral countries exhibit a slower, more moderate response, thereby remaining relatively insulated from policy-driven systemic risks. This underscores the varying impacts of monetary policy on housing stability across the Euro Area, highlighting the need for tailored policy responses.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102090"},"PeriodicalIF":2.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144886207","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-07-29DOI: 10.1016/j.jhe.2025.102086
Darren K. Hayunga , William Swymer
Single-family homes do not always sell during their initial listing contract. This study investigates how relisting a home–whether with the same or a different agent–affects transaction prices and marketing durations, using over 670,000 sales from 2000 to 2019, including nearly 45,000 relistings. We find that outcomes are shaped by the housing market phase, off-market gap between listings, and relisting type (expired vs. canceled). Relistings during the Peak phase (May 2005–March 2006) yield positive price effects, while other periods exhibit largely discounts. Short off-market gaps (0–7 days) lead to longer total marketing periods, suggesting market skepticism of superficial resets. In contrast, longer gaps (31–180 days) reduce total marketing durations, consistent with a new buyer pool or home renovations. Representation changes following expirations generate modest price gains, contrasting prior findings. Overall, relisting should not be viewed as a uniform signal of failure but as a strategic action shaped by timing and listing history.
{"title":"Relisting, agent switching, and sale outcomes in the housing market","authors":"Darren K. Hayunga , William Swymer","doi":"10.1016/j.jhe.2025.102086","DOIUrl":"10.1016/j.jhe.2025.102086","url":null,"abstract":"<div><div>Single-family homes do not always sell during their initial listing contract. This study investigates how relisting a home–whether with the same or a different agent–affects transaction prices and marketing durations, using over 670,000 sales from 2000 to 2019, including nearly 45,000 relistings. We find that outcomes are shaped by the housing market phase, off-market gap between listings, and relisting type (expired vs. canceled). Relistings during the Peak phase (May 2005–March 2006) yield positive price effects, while other periods exhibit largely discounts. Short off-market gaps (0–7 days) lead to longer total marketing periods, suggesting market skepticism of superficial resets. In contrast, longer gaps (31–180 days) reduce total marketing durations, consistent with a new buyer pool or home renovations. Representation changes following expirations generate modest price gains, contrasting prior findings. Overall, relisting should not be viewed as a uniform signal of failure but as a strategic action shaped by timing and listing history.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102086"},"PeriodicalIF":2.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144779568","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-08-19DOI: 10.1016/j.jhe.2025.102078
Jens von Bergmann , Thomas Davidoff , Nathan Lauster , Tsur Somerville
Facing worsening housing affordability, policymakers in a growing number of jurisdictions have heeded economists’ calls for increases in supply through relaxing land use restrictions, particularly on maximum allowed density and increases in the number of units allowed on a single lot. While floor space or floor area ratios (FSR or FAR) and unit count per lot are indicators of the potential for density, local governments have many levers to control the volume, type, and pace of new construction. In this paper, we compare changes in land prices and the pace of redevelopment following two similar, moderate density upzonings (up to four units per lot) of single family neighborhoods in the province of British Columbia (Canada). The upzoning in the City of Kelowna resulted in considerable new construction of higher density residential units as well as a significant increase in lot prices in the upzoned area relative to nearby areas with status quo zoning. In contrast, though the changes in allowed density were nearly identical, in Coquitlam there has been minimal uptake of new multiplex options and no discernible land lift in response to upzoning. We highlight the importance of other regulatory levers that are easy for analysts to miss in contributing to these different outcomes. The Kelowna upzoning was matched with an expedited development permit process for as-of-right fourplexes. In contrast, the Coquitlam rezoning did not alter the city’s lengthy development permit process required to build beyond the baseline duplex. Kelowna’s upzoning also required less parking than Coquitlam’s. An assessment of the regulatory environment relying on the presence of the upzoning alone would miss the alteration to process (or absence thereof) that appear to have had a significant effect across the two municipalities in whether zoning changes led to actual new construction.
{"title":"Upzoning and redevelopment: The details matter","authors":"Jens von Bergmann , Thomas Davidoff , Nathan Lauster , Tsur Somerville","doi":"10.1016/j.jhe.2025.102078","DOIUrl":"10.1016/j.jhe.2025.102078","url":null,"abstract":"<div><div>Facing worsening housing affordability, policymakers in a growing number of jurisdictions have heeded economists’ calls for increases in supply through relaxing land use restrictions, particularly on maximum allowed density and increases in the number of units allowed on a single lot. While floor space or floor area ratios (FSR or FAR) and unit count per lot are indicators of the potential for density, local governments have many levers to control the volume, type, and pace of new construction. In this paper, we compare changes in land prices and the pace of redevelopment following two similar, moderate density upzonings (up to four units per lot) of single family neighborhoods in the province of British Columbia (Canada). The upzoning in the City of Kelowna resulted in considerable new construction of higher density residential units as well as a significant increase in lot prices in the upzoned area relative to nearby areas with status quo zoning. In contrast, though the changes in allowed density were nearly identical, in Coquitlam there has been minimal uptake of new multiplex options and no discernible land lift in response to upzoning. We highlight the importance of other regulatory levers that are easy for analysts to miss in contributing to these different outcomes. The Kelowna upzoning was matched with an expedited development permit process for as-of-right fourplexes. In contrast, the Coquitlam rezoning did not alter the city’s lengthy development permit process required to build beyond the baseline duplex. Kelowna’s upzoning also required less parking than Coquitlam’s. An assessment of the regulatory environment relying on the presence of the upzoning alone would miss the alteration to process (or absence thereof) that appear to have had a significant effect across the two municipalities in whether zoning changes led to actual new construction.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102078"},"PeriodicalIF":2.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144907097","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-06-23DOI: 10.1016/j.jhe.2025.102082
Tobias Peter , Edward Pinto , Joseph Tracy
We provide an in-depth case study of land use reforms in Seattle to highlight how redevelopment of aging single-family housing to townhomes can lead to a significant increase in market-rate housing that promotes affordability. The key is to allow market forces to use by-right zoning to drive small-scale development, when also supported by clear and simplified regulatory frameworks. We have dubbed this the Housing Abundance Success Sequence, which is supported by this study along with over two dozen others. In Seattle, we document that such policies lead to a sustained 2.5 % per year increase in the housing stock, with a range of about 1–2.5 % in other case studies. Importantly, this approach requires no government subsidies and leads to higher local tax revenues. Our findings underscore the potential of thoughtful land use reforms to create more inclusive, affordable, and resilient housing markets, while also demonstrating that inclusionary zoning mandates do not work and can stop market-rate developers in their tracks.
{"title":"Low-rise multifamily and housing supply: A case study of seattle","authors":"Tobias Peter , Edward Pinto , Joseph Tracy","doi":"10.1016/j.jhe.2025.102082","DOIUrl":"10.1016/j.jhe.2025.102082","url":null,"abstract":"<div><div>We provide an in-depth case study of land use reforms in Seattle to highlight how redevelopment of aging single-family housing to townhomes can lead to a significant increase in market-rate housing that promotes affordability. The key is to allow market forces to use by-right zoning to drive small-scale development, when also supported by clear and simplified regulatory frameworks. We have dubbed this the Housing Abundance Success Sequence, which is supported by this study along with over two dozen others. In Seattle, we document that such policies lead to a sustained 2.5 % per year increase in the housing stock, with a range of about 1–2.5 % in other case studies. Importantly, this approach requires no government subsidies and leads to higher local tax revenues. Our findings underscore the potential of thoughtful land use reforms to create more inclusive, affordable, and resilient housing markets, while also demonstrating that inclusionary zoning mandates do not work and can stop market-rate developers in their tracks.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102082"},"PeriodicalIF":1.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144517357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-06-11DOI: 10.1016/j.jhe.2025.102080
Jing Xue , Zhenzhen Liu , Jian Tong , Chengxuan Li
Integrating equity of outcomes into China’s basic education equalization reform marks a significant step toward addressing the shortage of high-quality educational resources and spatial disparities in educational access. This paper develops a school choice model incorporating the quota allocation policy, and analyzes its impact on school choices and school district housing prices. Using a generalized difference-in-difference framework, we assess the impact of equity-of-outcomes policy in Shanghai, China. The empirical findings reveal that school district housing prices in Shanghai decline by 0.0466 % on average following the implementation of the quota allocation policy. Furthermore, families prioritize the competitive advantages of allocated quotas and minimum scores when making school choices. Additionally, the policy impact varies across income groups, with middle- and low-income households exhibiting greater responsiveness due to increased flexibility in school selection. By shifting parental preferences away from exclusive competition for elite junior high schools, the equity-of-outcomes reform fosters a more balanced distribution of student composition, ultimately enhancing educational quality and equity.
{"title":"Equity of educational outcomes and families’ school choices preferences: Evidence from education reform in China","authors":"Jing Xue , Zhenzhen Liu , Jian Tong , Chengxuan Li","doi":"10.1016/j.jhe.2025.102080","DOIUrl":"10.1016/j.jhe.2025.102080","url":null,"abstract":"<div><div>Integrating equity of outcomes into China’s basic education equalization reform marks a significant step toward addressing the shortage of high-quality educational resources and spatial disparities in educational access. This paper develops a school choice model incorporating the quota allocation policy, and analyzes its impact on school choices and school district housing prices. Using a generalized difference-in-difference framework, we assess the impact of equity-of-outcomes policy in Shanghai, China. The empirical findings reveal that school district housing prices in Shanghai decline by 0.0466 % on average following the implementation of the quota allocation policy. Furthermore, families prioritize the competitive advantages of allocated quotas and minimum scores when making school choices. Additionally, the policy impact varies across income groups, with middle- and low-income households exhibiting greater responsiveness due to increased flexibility in school selection. By shifting parental preferences away from exclusive competition for elite junior high schools, the equity-of-outcomes reform fosters a more balanced distribution of student composition, ultimately enhancing educational quality and equity.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102080"},"PeriodicalIF":1.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144329806","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-07-05DOI: 10.1016/j.jhe.2025.102079
Martin Časta
We analyze the relationship between mortgage rates and housing activity in the US, focusing on house prices. Employing impulse response functions (IRFs) and forecast variance ratios (FVRs), we address potential endogeneity concerns by instrumenting mortgage rates with changes in long-term yields. Our findings reveal a significant impact of mortgage rate changes on house prices, with the maximal implied long-run semi-elasticity being close to 10. The FVRs provide set-identified variance decomposition for the instrumented shock, suggesting that mortgage rate shocks explain 2%–25% of house price dynamics. The results also highlight substantial uncertainty, likely stemming from potential nonlinearities and regional factors influencing house price formation, which we further investigate. Additionally, we show that changes in mortgage rates significantly affect various dimensions of housing activity, including houses sold, construction, and building permits.
{"title":"The impact of mortgage rates on the housing market","authors":"Martin Časta","doi":"10.1016/j.jhe.2025.102079","DOIUrl":"10.1016/j.jhe.2025.102079","url":null,"abstract":"<div><div>We analyze the relationship between mortgage rates and housing activity in the US, focusing on house prices. Employing impulse response functions (IRFs) and forecast variance ratios (FVRs), we address potential endogeneity concerns by instrumenting mortgage rates with changes in long-term yields. Our findings reveal a significant impact of mortgage rate changes on house prices, with the maximal implied long-run semi-elasticity being close to 10. The FVRs provide set-identified variance decomposition for the instrumented shock, suggesting that mortgage rate shocks explain 2%–25% of house price dynamics. The results also highlight substantial uncertainty, likely stemming from potential nonlinearities and regional factors influencing house price formation, which we further investigate. Additionally, we show that changes in mortgage rates significantly affect various dimensions of housing activity, including houses sold, construction, and building permits.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102079"},"PeriodicalIF":1.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144588718","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-07-21DOI: 10.1016/j.jhe.2025.102083
Yichuan Zhang , Tianyun Zhu
This paper investigates the boundary effect of a nonlocal-license-plate-based driving restriction policy on the housing market of Shenzhen, China. Combining the difference-in-differences framework with the boundary discontinuity design, we find that the driving restriction policy on average led to a 6.36% increase in the housing price of the restricted zone. We also find that after the driving restriction boundary was removed and expanded, the observed increase in the housing price disparity across the initial boundary diminished. This paper presents the first empirical evidence on the heterogeneous effect of a driving restriction on housing prices across the driving restriction boundary.
{"title":"Driving restriction boundary and housing prices","authors":"Yichuan Zhang , Tianyun Zhu","doi":"10.1016/j.jhe.2025.102083","DOIUrl":"10.1016/j.jhe.2025.102083","url":null,"abstract":"<div><div>This paper investigates the boundary effect of a nonlocal-license-plate-based driving restriction policy on the housing market of Shenzhen, China. Combining the difference-in-differences framework with the boundary discontinuity design, we find that the driving restriction policy on average led to a 6.36% increase in the housing price of the restricted zone. We also find that after the driving restriction boundary was removed and expanded, the observed increase in the housing price disparity across the initial boundary diminished. This paper presents the first empirical evidence on the heterogeneous effect of a driving restriction on housing prices across the driving restriction boundary.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102083"},"PeriodicalIF":1.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144680400","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-07-23DOI: 10.1016/j.jhe.2025.102084
Joep Steegmans , Wolter Hassink
The paper investigates the effects of nominal loss aversion and equity constraints on house prices in a market without down-payment constraints or strategic defaults. Using extensive house transaction data of owner-occupied family homes from the Netherlands in combination with administrative microdata, the results show that the price effect of nominal loss aversion is about twice the size of the effect of negative equity. List price regressions provide evidence that higher transaction prices are obtained by setting higher list prices. Thereby the paper presents new evidence that nominal loss aversion and equity constraints lead to market premiums.
{"title":"Nominal loss aversion and equity constraints in house price determination: Empirical evidence in the absence of down-payment constraints","authors":"Joep Steegmans , Wolter Hassink","doi":"10.1016/j.jhe.2025.102084","DOIUrl":"10.1016/j.jhe.2025.102084","url":null,"abstract":"<div><div>The paper investigates the effects of nominal loss aversion and equity constraints on house prices in a market without down-payment constraints or strategic defaults. Using extensive house transaction data of owner-occupied family homes from the Netherlands in combination with administrative microdata, the results show that the price effect of nominal loss aversion is about twice the size of the effect of negative equity. List price regressions provide evidence that higher transaction prices are obtained by setting higher list prices. Thereby the paper presents new evidence that nominal loss aversion and equity constraints lead to market premiums.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102084"},"PeriodicalIF":2.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144771573","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-07-29DOI: 10.1016/j.jhe.2025.102085
Simon Büchler , Vera Götze , Lukas Hauck , Nicola Stalder
This paper examines how spatial planning restrictions shape housing cost responses to demand shocks. Using a detailed micro-level dataset from Switzerland, we analyze the effects of land reserves, density limits, refusal rates, and overall regulatory constraints. Our dynamic model shows that stricter planning regulations significantly amplify housing cost growth, with stronger effects on house prices than rents. We validate these findings using a Bartik-style instrumental variable strategy. The paper contributes to the literature by jointly analyzing prices and rents and identifying amplification effects across distinct regulatory tools. While based on Swiss data, the underlying institutional features, local control, and strong demand are common elsewhere, making the findings broadly relevant.
{"title":"The amplifying effect of spatial planning restrictions on house prices and rents","authors":"Simon Büchler , Vera Götze , Lukas Hauck , Nicola Stalder","doi":"10.1016/j.jhe.2025.102085","DOIUrl":"10.1016/j.jhe.2025.102085","url":null,"abstract":"<div><div>This paper examines how spatial planning restrictions shape housing cost responses to demand shocks. Using a detailed micro-level dataset from Switzerland, we analyze the effects of land reserves, density limits, refusal rates, and overall regulatory constraints. Our dynamic model shows that stricter planning regulations significantly amplify housing cost growth, with stronger effects on house prices than rents. We validate these findings using a Bartik-style instrumental variable strategy. The paper contributes to the literature by jointly analyzing prices and rents and identifying amplification effects across distinct regulatory tools. While based on Swiss data, the underlying institutional features, local control, and strong demand are common elsewhere, making the findings broadly relevant.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102085"},"PeriodicalIF":2.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144771574","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-01Epub Date: 2025-04-28DOI: 10.1016/j.jhe.2025.102069
Junya Hamaaki , Shinichiro Iwata
This paper examines the extent to which the labor supply of homeowners aged 40 years or over responds to unanticipated shocks to home values in Japan. Our findings suggest that only older homeowners respond to home value shocks. While older women strive to remain in the labor force, they tend to reduce their hours worked. Specifically, we find that an unanticipated one standard deviation increase in home value leads to a 5.2% reduction in hours worked per week relative to their average. Among older men, a small proportion choose to exit the labor force, while others reduce their hours worked without leaving their job. Specifically, an unanticipated one standard deviation increase in home value leads to a decrease in the likelihood of labor force participation by 4.8% and a reduction in hours worked per week of 9.2%, both relative to their average. We also find that women respond to home value shocks at a younger age than men. Women decrease their hours worked per week from the age of 55, while men start to reduce theirs from the age of 65. The small and late response to a home value shock among older homeowners may reflect the peculiarities of Japan’s housing and labor markets.
{"title":"Labor supply response to home value shocks: Evidence from Japan","authors":"Junya Hamaaki , Shinichiro Iwata","doi":"10.1016/j.jhe.2025.102069","DOIUrl":"10.1016/j.jhe.2025.102069","url":null,"abstract":"<div><div>This paper examines the extent to which the labor supply of homeowners aged 40 years or over responds to unanticipated shocks to home values in Japan. Our findings suggest that only older homeowners respond to home value shocks. While older women strive to remain in the labor force, they tend to reduce their hours worked. Specifically, we find that an unanticipated one standard deviation increase in home value leads to a 5.2% reduction in hours worked per week relative to their average. Among older men, a small proportion choose to exit the labor force, while others reduce their hours worked without leaving their job. Specifically, an unanticipated one standard deviation increase in home value leads to a decrease in the likelihood of labor force participation by 4.8% and a reduction in hours worked per week of 9.2%, both relative to their average. We also find that women respond to home value shocks at a younger age than men. Women decrease their hours worked per week from the age of 55, while men start to reduce theirs from the age of 65. The small and late response to a home value shock among older homeowners may reflect the peculiarities of Japan’s housing and labor markets.</div></div>","PeriodicalId":51490,"journal":{"name":"Journal of Housing Economics","volume":"69 ","pages":"Article 102069"},"PeriodicalIF":1.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144212889","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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