Housing Lecture Series Recap: Interest Rates and Fundamental Fluctuations In Home Values
Professor Albert Saiz,of MIT visited the Lewis Center in May to discuss his research findings about interest rates and their connection with fluctuations in housing prices. Speaking to an audience of 25, he found that the interest rate-housing prices link has significant consequences for wealth accumulation, labor mobility, consumption, macroeconomic volatility, and financial market stability. However, Prof. Saiz noted that it is difficult to know if housing price movements are due to fundamental factors such as rental prices or “irrational exuberance”.
Prof. Saiz shared grounded theoretical expectations about the impact of changes in rental prices on home values. He stated that rental prices and rental expenditures are explained at least in part by interest rates, and that expected changes in home values are a function of the supply elasticity of housing and the initial share of land relative to prices in a city.
Prof. Saiz spoke as part of a spring series of lectures focusing on housing.
Recent Posts
UCLA Mobility Center receives $2.5 million federal grant to advance cooperative perception technology
The CP-X initiative will develop systems that let vehicles, infrastructure and road users share real-time awareness to improve safety.
Easy reading, hard writing: “The Shoup Doctrine” honors Donald Shoup’s life and ideas
Hundreds gathered at UCLA for the launch of a new book honoring Shoup’s lasting legacy on parking policy and urban planning.
Featured Content
