Understanding the Rise In Residential Real-Estate Prices
Faculty Sponsor(s)
Eric Schuck
Location
Jereld R. Nicholson Library: Grand Avenue
Subject Area
Economics
Description
Abstract
Residential real estate prices have risen substantially in the United States since 2000. This paper assumes that observations of real estate prices are in equilibrium, this allows a focus on the demand side drivers to determine what influences prices. Using economic inputs such as interest rates and recessions in union with consumer willingness to pay, this paper regresses variables on the demand side of home buying to identify which are significant drivers and which are not. The adjusted regression found that there was a stronger correlation between consumer inputs on the demand side than economic drivers. Converted supply-side metrics, ie. land prices, also had a strong correlation to home prices as well as income-related drivers.
Recommended Citation
Oakes, Peter, "Understanding the Rise In Residential Real-Estate Prices" (2022). Linfield University Student Symposium: A Celebration of Scholarship and Creative Achievement. Event. Submission 7.
https://digitalcommons.linfield.edu/symposium/2022/all/7
Understanding the Rise In Residential Real-Estate Prices
Jereld R. Nicholson Library: Grand Avenue
Abstract
Residential real estate prices have risen substantially in the United States since 2000. This paper assumes that observations of real estate prices are in equilibrium, this allows a focus on the demand side drivers to determine what influences prices. Using economic inputs such as interest rates and recessions in union with consumer willingness to pay, this paper regresses variables on the demand side of home buying to identify which are significant drivers and which are not. The adjusted regression found that there was a stronger correlation between consumer inputs on the demand side than economic drivers. Converted supply-side metrics, ie. land prices, also had a strong correlation to home prices as well as income-related drivers.
