Location, Location, Location: Manufacturing and House Price Growth

• 成果类型: Article
• 署名作者: Feng, Xiangyu; Jaimovich, Nir; Rao, Krishna; Terry, Stephen J.; Vincent, Nicolas
• 署名单位: Xiamen University; University of California System; University of California San Diego; Center for Economic & Policy Research (CEPR); National Bureau of Economic Research; Boston University; Universite de Montreal; HEC Montreal
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/uead008
• 发表日期: 2023
• 页码: 2055-2067
• 关键词: decline

摘要

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.