摘要:

Housing analysts have generally assumed that mortgage qualification requirements significantly constrain homownership, however there has been no empirical evidence of this effect. By explicitly modeling and estimating the impact of mortgage qualification requirements on households' mobility and tenure decisions, this paper provides the first empirical evidence of the effect of these criteria on homeownership. The estimation results suggest that in 1986, mortgage qualification criteria did not provide a large constraint on homeownership. However, they also show that the impact of these criteria increases as the flow costs of owning decrease relative to those of renting. This implies that the nationwide significance of these constraints will vary with fluctuations in the macro economy, and that policies designed to limit the effect of these requirements will be more successful in economic environments favorable to homeownership.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00470

出版商:Blackwell Publishing Ltd    

年代:1989

数据来源: WILEY

摘要:

This paper argues that a central implication of tenure transition models is that the timing of a household's initial switch to ownership is particularly dependent upon its current net worth. In contrast, permanent income, largely derived from human capital, is assumed to be the dominant component of the relevant household budget constraint in conventional tenure choice models. These contending propositions are tested using a Canadian micro database. Consistent with the tenure transition approach, current nonhuman wealth is found to have the primary budgetary role in tenure mode decisions of young households.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00471

出版商:Blackwell Publishing Ltd    

年代:1989

数据来源: WILEY

摘要:

Development exactions in the form of impact fees are being used increasingly by local governments to fund the cost of providing public services necessitated by growth and development. This paper presents the results of an empirical study designed to ascertain the extent to which impact fees are capitalized into the price of new, single‐family dwellings. On June 3, 1974, the city of Dunedin, located in Pinellas County, Florida, began assessing impact fees of $1,150 against all new, single‐family construction. Using data on 5,839 new home sales in Dunedin and three other cities in Pinellas County from 1971–1982, it was found that builders were able to pass forward the total cost of impact fees to new home buyers. However, the price differential due to impact fees for new dwellings in Dunedin compared to the price of new dwellings in the other three cities disappeared after approximately six years. This is explained by the nature of the fee structure in Dunedin, adjustments in factor costs, increases in the price of housing in competing cities, and unrealized expectations regarding the benefits to be provided by impact fee collec

ISSN:1080-8620    

DOI:10.1111/1540-6229.00472

出版商:Blackwell Publishing Ltd    

年代:1989

数据来源: WILEY

摘要:

This paper presents a theoretical model of residential mortgage default when borrowers face beneficial as well as costly relocation opportunities. It amplifies and extends previous work by providing explicit conditions leading to default. The model also establishes when a borrower's relocation decision and default decision are dependent and when they are not.A central result is that there is a range of book equity wherein the decision to default is not determined solely by the current level of equity or the borrower's ability to continue the mortgage payments. Rather, various costs and benefits, both tangible and intangible, enter into the decision. Specific conditions are identified that lead to relocation without default, default and relocation, and no default or relocation. The effects of changes in the variables upon default probability are presented.Assuming that the borrower does not wish to retain ownership in the property, the model also predicts whether an individual borrower will choose prepayment or default when a relocation is made. The choice depends on the value of the relocation opportunity faced by the borrower, as well as financial variables such as house value, mortgage balance, and transaction costs. This finding suggests that existing empirical analyses of default may have omitted explanatory variables.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00473

出版商:Blackwell Publishing Ltd    

年代:1989

数据来源: WILEY

摘要:

Since real estate assets are sold infrequently, analyses that use samples of exclusively sold properties to estimate pricing models may be seriously in error. This paper uses data on samples of sold and unsold properties and an appropriate statistical methodology to evaluate the extent of this bias. The results clearly show that it is important to control for sales motivations and that pricing equations that ignore this source of bias may be misleading.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00474

出版商:Blackwell Publishing Ltd    

年代:1989

数据来源: WILEY

摘要:

This paper discusses the relative importance of Rental Equivalence (REQ) in the U.S. Consumer Price Index. A hedonic model of rents is estimated, and the resulting parameters are then used to compare hedonic estimates of implicit rents to homeowner estimates like those actually used to estimate the REQ expenditure weight. There are several reasons why hedonic estimates might be below actual implicit rents, and these effects are controlled for in the model. Owner estimates of implicit rents are then shown to be comparable to such hedonic estimates. Results support the method used to estimate the expenditure weight.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00475

出版商:Blackwell Publishing Ltd    

年代:1989

数据来源: WILEY

摘要:

This paper reports residential real estate price indexes computed from the Standard Metropolitan Statistical Area (SMSA) Annual Housing Survey (AHS) for the 1974 through 1983 period. During this ten‐year period, the U.S. Bureau of the Census conducted detailed surveys of the housing stock in sixty metropolitan areas in a three to four year cycle. This information is used to compute tenure specific hedonic housing price indexes for: (1) the entire metropolitan housing market; (2) separately for properties located in the central city and in the suburbs (whenever central city locations are identified); and (3) for three points in the dwelling quality distribution‐for substandard housing (using the definition employed by the U.S. Department of Housing and Urban Development), for new housing (housing less than three years old and not substandard), and for existing standard quality housing (everything else). In addition, the hedonic prices reported here are adjusted for the finite sample bias introduced when taking the exponential of a lognormally distributed random varia

ISSN:1080-8620    

DOI:10.1111/1540-6229.00476

出版商:Blackwell Publishing Ltd    

年代:1989

数据来源: WILEY

摘要:

In this paper we estimate a model of mortgage borrower behavior using micro‐level data on Canadian borrowers with rollover mortgages—a form of adjustable‐rate mortgage. Our results suggest that the probability of default rises with a decrease in housing equity and an increase in the mortgage contract rate; however the size of these changes is relatively small. They also show that partial prepayment is sensitive to fluctuations in the rates of return from investing in housing versus other assets. For the United States experience, our results suggest that, relative to fixed‐rate mortgage borrowers, adjustable‐rate mortgage borrowers are more likely to default and less likely

ISSN:1080-8620    

DOI:10.1111/1540-6229.00477

出版商:Blackwell Publishing Ltd    

年代:1989

数据来源: WILEY