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What is behind housing sentiment?

Author

Listed:
  • Biktimirov, Ernest N.
  • Sokolyk, Tatyana
  • Ayanso, Anteneh

Abstract

We utilize topic modeling to analyze the relation between housing media sentiment and house price changes in the United States. We uncover seven distinct topics related to housing market in articles published in the Wall Street Journal, New York Times, and USA Today during the 2000–2021 period. Not all topics show significant relation to house price movements. Sentiments of articles related to economic outlook and house construction are most significant in explaining future house price changes suggesting that news media discussions about economic fundamentals stand behind the link between news media sentiment and house price changes.

Suggested Citation

  • Biktimirov, Ernest N. & Sokolyk, Tatyana & Ayanso, Anteneh, 2024. "What is behind housing sentiment?," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323013387
    DOI: 10.1016/j.frl.2023.104966
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    More about this item

    Keywords

    House prices; Housing sentiment; Machine learning; Media sentiment; News analytics; Real estate prices; Textual analysis; Topic modeling;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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