Location, Location, Location

Manufacturing and House Price Growth

Bibliographic Data

ID9720475
AuthorsXiangyu Feng (Paula and Gregory Chow Institute for Studies in Economics, Xiamen University , China), Nir Jaimovich (University of California San Diego & CEPR & NBER , USA), Krishna Rao (0000-0002-9213-7850, Landed, Inc. , USA), Stephen J Terry (Boston University & NBER , USA), Stephen Terry (0000-0002-7692-2074, Boston University), Nicolas Vincent (0000-0001-7873-9057, HEC Montréal, corresponding author)
Year2023
Volume133
Issue653
Pages2055-2067
Publication date2023-06-10
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/ej/uead008
OpenAlexW4318173882
LanguageEN
References cited21

Exploiting data on tens of millions of housing transactions, we show that (1) house prices grew by less in manufacturing-heavy US regions, (2) this pattern is especially present for the lowest-value homes and that (3) price declines coincided with worse labour market outcomes, consistent with an income channel. Counterfactual accounting exercises reveal that regional differences in the growth of these lowest-value homes are an important driver of the changes in overall house price inequality. Hence, the economic decline in manufacturing-heavy areas extends far beyond income and employment flows to house prices

Counterfactual thinking · Economics · House price · Inequality · Labour economics · Monetary economics · Value (mathematics · Fiscal Policy and Economic Growth · Housing Market and Economics · Regional Economics and Spatial Analysis

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