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A Possible Method for Warning of House Price Bubble

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  • Anthony Yanxiang Gu

Abstract

Metropolitan areas that had the most house price inflation between 1998 and 2006 and the highest price to income ratios are characterized by strong income growth and high population density. Areas with the highest price to income ratios in 2006 and lowest population density suffered the largest percentage price declines after the bubble burst. An equation is established for estimating warning level against house price bubble, and the estimated warning could leave 19 percent room and more than two years of time for action.

Suggested Citation

  • Anthony Yanxiang Gu, 2013. "A Possible Method for Warning of House Price Bubble," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 3(2), pages 104-113, February.
    • Handle: RePEc:mir:mirbus:v:3:y:2013:i:2:p:104-113
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