We study how rent control and housing rationing shape housing investment and market tightness in Geneva using a VAR on annual data (1994-2022) with generalized impulse responses and Granger causality. We find that housing rationing functions as abinding quantity restriction as it precedes a...

We document that increases in property insurance premiums reduce mortgage originations. The effect is strongest for the rate refinancing and cash-out refinancing segments. We show that denials associated with increased premiums are significantly more likely attributed to high debt-to-income...

This paper explores ways in which borrower-based measures (BBMs) could be applied to commercial real estate (CRE) lending, focusing on suitable metrics and scope. BBMs have already proven to be effective in mitigating credit risks in residential real estate lending by curbing excessive credit...

We study how rent control and housing rationing shape housing investment and market tightness in Geneva using a VAR on annual data (1994-2022) with generalized impulse responses and Granger causality. We find that housing rationing functions as abinding quantity restriction as it precedes a...

Macroprudential policies are a key policy tool for financial regulators, but concerns persist that these policies restrict access to homeownership. I examine this concern using crosscountry data on homeownership for 28 countries. I find little evidence that macroprudential policies reduce...

Between 1950 and 2023, the housing cost burden - approximated by the proportion of total household consumption expenditure spent on housing, water, electricity and fuel - has risen almost steadily in many countries around the world. First, this trend can be explained by substantial improvements...

This study explores the housing distribution effect of the Housing Provident Fund (HPF) system on households. Utilizing data from the China Household Finance Survey conducted in 2013, 2015, 2017, and 2019, this study empirically investigates this effect from two dimensions: the impact of HPF...

The development of home ownership in the second half of the 20th century has been perceived as an asset and a significant contributor to wealth accumulation. However, rising property prices and increasingly stringent mortgage lending criteria have placed this model under pressure, particularly...

Using a monthly panel dataset of individuals' debt, we show that house price changes can explain a significant fraction of personal debt composition dynamics. We exploit the variation in local house price growth as shocks to homeowners' housing wealth to study the consequential adjustment of...

Housing and mortgage choices are among the largest financial decisions households make and they substantially impact households' liquidity. This paper explores how monetary policy affects aggregate demand by influencing these portfolio choices. To quantify this channel, I build a...

This paper examines the impact of mortgage market structures on shaping economic responses to the unprecedented interest rate and inflation dynamics of 2021-2024. We first empirically document that economies with a larger share of variable-rate mortgages exhibit stronger responses in house...

The study examines housing affordability in Germany from 2017 to 2023 in light of rising real estate prices and challenges in the housing market. It uses the Housing Affordability Index to identify trends and patterns and propose policy measures to tackle the problems. The results show regional...

This paper examines the impact of mortgage market structures on shaping economic responses to the unprecedented interest rate and inflation dynamics of 2021-2024. We first empirically document that economies with a larger share of variable-rate mortgages exhibit stronger responses in house...

We empirically document deviations of residential real estate prices from fundamental values at the micro level and investigate their relationship with local bank lending growth during a period of unconventional monetary policy. Our findings indicate a positive relationship between credit growth...

Almost half of mortgage lending to homeowners in Denmark consists of 30-year fixed-rate loans. The loans are callable, so homeowners can redeem their loan and take out a new one if, for example, they want to refinance at a lower rate if interest rates fall. We calculate a financial incentive for...

Housing markets are affected by a large variety of factors. Among them, governmental regulations play an important role. Besides desired effects, all these policies exert a number of side effects, some of which can even offset the desired effects. In addition, different policies can cancel out...

Die letzten Jahre waren äußerst turbulent und stellten auch einen Stresstest für die Immobilienfinanzierung dar. In dem vorliegenden Beitrag ist dabei die Entwicklung in Deutschland international eingeordnet worden. Darüber hinaus ist eine zentrale Voraussetzung für Festzinssysteme - die...

This Technical Report documents the construction and coverage of the IWH European Real Estate Index (EREI). Since 2018, we have used machine-learning methods to collect monthly listings of residential real estate available for sale or rent in up to 20 European countries. The Technical Report...

We study whether and how EU banks comply with tighter macroprudential policy (MPP). Observing contractual details for more than one million securitized loans, we document an elusive risk-shifting response by EU banks in reaction to tighter loan-to-value (LTV) restrictions between 2009 and 2022....

We compare the macroeconomic and housing-market effects of (1) reducing mortgage subsidies, (2) tightening borrower-based tools (debt-service-to-income [DSTI]/loan-to-value [LTV]) and (3) standard monetary and external shocks.We develop a small open-economy (SOE) New Keynesian dynamic stochastic...

Housing (un-)affordability has become a defining social and economic challenge in German cities, shaping both wealth accumulation and intergenerational inequality. We decompose affordability into two components: the ability to service monthly mortgage payments and the ability to meet the upfront...

This paper examines how housing tokenization is discursively framed in Chile's digital public sphere, assessing whether it promotes affordability or reinforces financialization. Using a methodology that combines natural language processing, topic modeling, sentiment analysis, and semantic...

This study examines the effect of systematic household misestimation of home prices on financial decisions, including stockholdings, consumption, and asset allocation. Using exogenous variation in house values, mortgage debt, and homeowner misestimation identified through differences in local...

During the last decade, property prices in Germany steadily appreciated and reached an all-time high in 2022. In the wake of the global financial crisis that was triggered by a housing market bubble in the U.S., banking authorities introduced an additional systemic risk buffer. This buffer aims...