Stimulating Housing Markets
Published
Journal Article
© 2019 the American Finance Association We study temporary fiscal stimulus designed to support distressed housing markets by inducing demand from buyers in the private market. Using difference-in-differences and regression kink research designs, we find that the First-Time Homebuyer Credit increased home sales by 490,000 (9.8%), median home prices by $2,400 (1.1%) per standard deviation increase in program exposure, and the transition rate into homeownership by 53%. The policy response did not reverse immediately. Instead, demand comes from several years in the future: induced buyers were three years younger in 2009 than typical first-time buyers. The program's market-stabilizing benefits likely exceeded its direct stimulus effects.
Full Text
Duke Authors
Cited Authors
- Berger, D; Turner, N; Zwick, E
Published Date
- February 1, 2020
Published In
Volume / Issue
- 75 / 1
Start / End Page
- 277 - 321
Electronic International Standard Serial Number (EISSN)
- 1540-6261
International Standard Serial Number (ISSN)
- 0022-1082
Digital Object Identifier (DOI)
- 10.1111/jofi.12847
Citation Source
- Scopus