Second‐home buying and the housing boom and bust

2021 ◽  
Author(s):  
Daniel García
Keyword(s):  
Second Home ◽  
Housing Boom ◽  
Boom And Bust ◽  
Home Buying

scholarly journals Second-Home Buying and the Housing Boom and Bust

2019 ◽  
Vol 2019 (029) ◽  
pp. 1-36
Author(s):  
Daniel Garcia ◽  
Keyword(s):  
House Prices ◽  
Central Feature ◽  
Local Data ◽  
Second Home ◽  
Boom And Bust ◽  
Macroeconomic Effects ◽  
Run Up ◽  
Open Question ◽  
Identification Strategy ◽  
Home Buying

Record-high second home buying (homeowners acquiring nonprimary residences) was a central feature of the 2000s boom, but the macroeconomic effects remain an open question partly because reliable geographic data is currently unavailable. This paper constructs local data on second home buying by merging credit bureau data with mortgage servicing records. The identification strategy exploits the fact that the vacation share of housing from the 2000 Census is predictive of second home origination shares during the boom years, while also uncorrelated with other boom-bust drivers including proxies for local housing expectations, the use of alternative and PLS mortgages, and supply constraints. Localities with plausibly exogenous higher second home origination shares experienced a more pronounced boom and bust - stronger growth in construction and house prices during the boom, and steeper declines in activity during the recession years. Overall, second home buying could exp lain about 30 and 15 percent of the run-up in construction employment and house prices, respectively, over 2000-2006.

scholarly journals The Vulnerability of Minority Homeowners in the Housing Boom and Bust

2016 ◽  
Vol 8 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Patrick Bayer ◽  
Fernando Ferreira ◽  
Stephen L. Ross
Keyword(s):  
Racial Disparities ◽  
Economic Shocks ◽  
Large Sample ◽  
Housing Boom ◽  
Boom And Bust ◽  
Credit Scores

This paper examines mortgage outcomes for a large sample of individual home purchases and refinances linked to credit scores in seven major US markets. Among those with similar credit scores and loan attributes, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These estimated differences are especially pronounced for loans originated near the peak of the housing boom. These findings suggest that black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise concerns about homeownership as a mechanism for reducing racial disparities in wealth. (JEL D14, J15, R23, R31, R38)

The Housing Boom and Bust in the Twin Cities

2013 ◽  
Vol 23 (1) ◽  
pp. 144-158 ◽  
Author(s):  
Jeff Crump
Keyword(s):  
Twin Cities ◽  
Housing Boom ◽  
Boom And Bust

Effects of the Housing Boom and Bust on U.S. Metro Employment

2013 ◽  
Vol 44 (3) ◽  
pp. 391-414 ◽  
Author(s):  
Todd M. Gabe ◽  
Richard Florida
Keyword(s):  
Housing Boom ◽  
Boom And Bust

Hiding high pay

2017 ◽  
Author(s):  
Graeme Guthrie
Keyword(s):  
Executive Compensation ◽  
Construction Industry ◽  
Executive Pay ◽  
Managerial Power ◽  
Housing Boom ◽  
Boom And Bust ◽  
Home Construction ◽  
Bargaining Positions

This chapter uses pay in the home construction industry during the recent housing boom and bust to illustrate the second of the two competing theories that economists use to understand executive compensation: the managerial power hypothesis. According to this theory, boards at some firms have such weak bargaining positions that the only constraint on executive pay is the prospect of shareholder outrage. The theory’s central prediction is that weak boards and strong CEOs combine to find ways to pay executives that reduce the threat of shareholder outrage. This chapter develops this prediction and demonstrates its ability to explain observed pay practices that have the effect of camouflaging high pay levels.

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