House Prices and Home Owner Saving Behavior

Gary V. Engelhardt

309 citations0/0 files storedRegional Science and Urban Economics

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Housing Market and Economics Financial Literacy, Pension, Retirement Analysis Housing, Finance, and Neoliberalism

Abstract

This paper examines the empirical link between house price appreciation and the savings behavior of home owners during the 1980s. The analysis uses household asset and debt data for a sample of under age 65 home-owning households from the 1984 and 1989 waves of the PSID to construct changes in real household wealth as a measure of household saving behavior. Cross-time and cross-regional variation in housing market conditions are used to identify behavioral savings effects. The empirical analysis suggests that the estimated marginal propensity to consume out of real housing capital gains is 0.03 for the median saver household. However, there is an asymmetry in the saving response to both total and unanticipated real housing capital gains. All the savings offset comes from households that experience real housing capital losses. Households that experience real gains do not change their saving behavior. The existence of this asymmetry casts doubt on the power of changes in house prices to explain the time-series path of saving in the United States.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 309 citations exist upstream.

References

1988The Efficiency of the Market for Single-Family Homes 1990Anomalies: Saving, Fungibility, and Mental Accounts 1991House Price Dynamics: The Role of Tax Policy and Demography 1988The Behavior of Home Buyers in Boom and Post-Boom Markets 1992Union Contracts and Life Cycle - Permanent Income Hypothesis 1991The Decline in Saving: Evidence from Household Surveys 1990Issues in the Economics of Aging 1991Aging and the income value of housing wealth

Cited by

2010Housing markets and the financial crisis of 2007–2009: Lessons for the future 2003Nominal loss aversion, housing equity constraints, and household mobility: evidence from the United States 2006How Large Is the Housing Wealth Effect? A New Approach 2004Real Estate Versus Financial Wealth in Consumption 2005How Do House Prices Affect Consumption? Evidence from Micro Data 2004ARE HOME PRICES THE NEXT BUBBLE

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.