Equilibrium between interest payments and income in the housing market

Datos Bibliográficos

ID12820087
AutoresPaul S de Vries (0000-0003-0964-0111, Delft University of Technology, autor de correspondencia), Peter J Boelhouwer (0009-0003-4092-913X, Delft University of Technology)
Año2008
Volumen24
Número1
Páginas19-29
Fecha de publicación2008-11-27
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaJournal of Housing and the Built Environment (JOURNAL)
Identificadores de la revistaISSN: 1566-4910 • E-ISSN: 1573-7772
EditorialSpringer Science+Business Media (PUBLISHER • DE)
DOI10.1007/s10901-008-9131-z
OpenAlexW2098498146
IdiomaEN
Citas recibidas3
Referencias citadas19

The literature on housing markets suggests that house prices in almost all western economies can be explained by short-run demand-oriented variables and a long-run term. The basic principles of the theory are that the short-run fluctuations, which are based on recent price developments (shocks), occur due to market imperfection, while over the long term, causality with such fundamentals as income will recover. Nonetheless, many of the interesting questions in housing economics concern adjustments toward equilibrium. This paper seeks to identify a long-run equilibrium between interest payments and household income (interest-to-income ratio) instead of between house prices and income (price-to-income ratio)

Comprehensive income · Economics · Gross income · Interest rate · Macroeconomics · Monetary economics · Payment · Permanent income hypothesis · Public economics · Term (time · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism · Finance

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