Nuremberg Research Seminar in Economics on 18 November 2020
You are invited to join the weekly Nuremberg Research Seminar in Economics on 11 November 2020. Please note that it starts at !! 13:45 pm !!. The seminar will be held via Zoom. Charles Nathanson (Northwestern University) will be talking about “Housing Supply and Affordability: Evidence from Rents, Housing Consumption and Household Location”.
Please find below the abstract:
Using variation across metropolitan areas in the US, we show that housing supply constraints have only modestly altered outcomes related to housing affordability—rents, house sizes, lot sizes, and household location choice—relative to their effects on house price growth between 1980 and 2016. We interpret these findings by calibrating a dynamic, spatial equilibrium model in which these outcomes are endogenous. The model matches the effects of supply constraints on most outcomes, in part because prices rise more than rents as prices capitalize future rent growth. Thus, supply constraints have had only small effects on housing affordability in the US, despite their larger effects on house prices.