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National and regional housing patterns

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  • Lynn E. Browne

Abstract

Residential investment is one of the most volatile components of GDP. Coming out of a recession, it is not uncommon for residential investment to jump by more than 20 percent in a year. Going into a recession, it may fall by a similar fraction. Thus, while residential investment accounts for just 4 percent of GDP, it can have a disproportionate influence at critical junctures. Moreover, fluctuations in residential investment can have even greater impact at the regional level. This article compares patterns of residential investment, with a particular emphasis on the similarities and differences between the 1980s and the 1990s in individual regions. On balance, the author finds the picture as of 1999 to be fairly reassuring. Although the volume of construction in the Mountain states was high, even relative to that area's rapid population growth, no region seemed to possess the vulnerabilities that characterized New England and Texas in the 1980s.

Suggested Citation

  • Lynn E. Browne, 2000. "National and regional housing patterns," New England Economic Review, Federal Reserve Bank of Boston, issue Jul, pages 31-57.
    • Handle: RePEc:fip:fedbne:y:2000:i:jul:p:31-57
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    References listed on IDEAS

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    1. Lynn E. Browne, 1989. "Shifting regional fortunes: the wheel turns," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 27-40.
    2. Lynn E. Browne & Rebecca Hellerstein & Jane Sneddon Little, 1998. "Inflation, asset markets, and economic stabilization: lessons from Asia," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 3-32.
    3. Matthew Higgins & Carol L. Osler, 1998. "Asset market hangovers and economic growth: U.S. housing markets," Research Paper 9801, Federal Reserve Bank of New York.
    4. Rochelle M. Edge, 2000. "The effect of monetary policy on residential and structures investment under differential project planning and completion times," International Finance Discussion Papers 671, Board of Governors of the Federal Reserve System (U.S.).
    5. Karl E. Case, 1986. "The market for single-family homes in the Boston area," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 38-48.
    6. Michael Fratantoni & Scott Schuh, 2000. "Monetary policy, housing investment, and heterogeneous regional markets," Working Papers 00-1, Federal Reserve Bank of Boston.
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    2. John M. Quigley, 2006. "Federal credit and insurance programs: housing," Review, Federal Reserve Bank of St. Louis, vol. 88(Jul), pages 281-310.
    3. Stephen Mak & Lennon Choy & Winky Ho, 2012. "Region-specific Estimates of the Determinants of Real Estate Investment in China," Urban Studies, Urban Studies Journal Limited, vol. 49(4), pages 741-755, March.
    4. Alain Kabundi & Eliphas Ndou & Nombulelo Gumata, 2013. "Important Channels of Transmission Monetary Policy Shock in South Africa," Working Papers 375, Economic Research Southern Africa.
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    6. Nicholas Apergis & Ghassen El Montasser & Emmanuel Owusu-Sekyere & Ahdi N. Ajmi & Rangan Gupta, 2014. "Dutch Disease Effect of Oil Rents on Agriculture Value Added in MENA Countries," Working Papers 201408, University of Pretoria, Department of Economics.
    7. Martha L. Olney & Aaron Pacitti, 2017. "The Rise Of Services, Deindustrialization, And The Length Of Economic Recovery," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1625-1647, October.

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