Year: 2024
Type: article
Abstract: This study examines the influence of macroeconomic indicators—U.S. GDP, tax rates, population, and interest rates—on housing prices across the United States, utilizing data from 1982 to 2018 sourced from the Federal Reserve Economic Data (FRED). Employing a comprehensive analytical framework, including multiple linear regression, time series analysis, and a mixed-effects model, the research identifies GDP and tax rates as significant factors affecting housing prices. GDP positively correlates with housing prices, whereas higher tax rates have a negative impact. The study highlights the importance of accounting for regional variations through mixed-effects modeling, which captures the diverse impacts of economic indicators across different states. This approach offers nuanced understandings to the real estate market's dynamics, emphasizing the role of economic growth and fiscal policies. The findings aid policymakers in understanding the economic forces shaping housing markets and suggest further research avenues, particularly in incorporating recent global economic events like the COVID-19 pandemic.
Author: Yuming Zhang
Institution: University of Michigan
Language: English
Topic: Housing Market and Economics
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4403846045