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We estimate a neighborhood choice model using 2014 American Community Survey data to investigate the degree to which new housing supply can improve housing affordability. In the model, equilibrium rental rates are determined so that the number of households choosing each neighborhood is equal to...
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support, we estimate an immediate and persistent increase in homeownership, with larger effects among those most financially … differences in subsequent years. Finally, effects on marriage and fertility lag homeownership. Altogether, the results appear to …
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We study the effect of interest rates on the housing market by taking advantage of a sudden and unexpected price change in a large government mortgage program. The Federal Housing Administration (FHA) insures most mortgages to lower-downpayment, lower credit score borrowers, including a majority...
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