Finance and the supply of housing quality *

• 成果类型: Article
• 署名作者: Reher, Michael
• 署名单位: University of California System; University of California San Diego
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.04.022
• 发表日期: 2021
• 页码: 357-376
• 关键词: banks; Housing quality; rent; Financial regulation

摘要

I show how financial intermediaries affect rental housing quality and affordability by sup-plying real estate investors with financing for quality improvement projects (i.e., renova-tions). First, I document a historic surge in improvement activity since the Great Recession. Then, using exogenous variation generated by a 2015 change in regulatory capital require-ments, I find that a reallocation of bank credit toward improvement projects accounts for 24% of quality improvements since 2015. The shock increases the supply of high-quality apartments and lowers their rent. However, it raises the average apartment's rent and ac-counts for 32% of historically high rent growth over 2015-16. (c) 2021 Elsevier B.V. All rights reserved.