Equilibrium between interest payments and income in the housing market

Dados Bibliográficos

ID12820087
AutoresPaul S de Vries (0000-0003-0964-0111, Delft University of Technology, autor correspondente), Peter J Boelhouwer (0009-0003-4092-913X, Delft University of Technology)
Ano2008
Volume24
Fascículo1
Páginas19-29
Data de publicação2008-11-27
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoJournal of Housing and the Built Environment (JOURNAL)
Identificadores do periódicoISSN: 1566-4910 • E-ISSN: 1573-7772
EditoraSpringer Science+Business Media (PUBLISHER • DE)
DOI10.1007/s10901-008-9131-z
OpenAlexW2098498146
IdiomaEN
Citações recebidas3
Referências 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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