Segmented Housing Search
By Monika Piazzesi, Martin Schneider, Johannes Stroebel. The American Economic Review, 2020
162 citations recorded by the source corpus.
We study housing markets with multiple segments searched by heterogeneous clienteles. In the San Francisco Bay Area, search activity and inventory covary negatively across cities, but positively across market segments within cities. A quantitative search model shows how the endogenous flow of broad searchers to high-inventory segments within their search ranges induces a positive relationship between inventory and search activity across segments with a large common clientele. The prevalence of broad searchers shapes the response of housing markets to localized supply and demand shocks. Broad searchers help spread shocks across many segments and reduce their effect on local market activity. (JEL D83, R21, R31)
Subfields: Economics and Econometrics, Finance, Transportation
View Paper: https://www.semanticscholar.org/paper/c06842f2e86dff2dc9682de6f68baecc16b00175
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Citations in the corpus
- Disaster on the horizon: The price effect of sea level rise (2019, background): “However, Piazzesi et al. (2015) document substantial segmentation and illiquidity in the residential real estate market, raising the possibility that such heterogeneity in the SLR exposure discount may exist.”
- Does Climate Change Affect Real Estate Prices? Only If You Believe In It (2020, unknown): “Let us consider the median home value of $190,000 in our sample, which is close to the average home price in Rao (2017). Our estimate suggests that moving this house from a neighborhood whose value of Hc is 1-standarddeviation below the mean to one that is 1-standard-deviation above, would decrease ”