Work

A Housing Portfolio Channel of QE Transmission

Year: 2026

Type: article

Abstract: We document a housing portfolio channel of monetary policy transmission using German household data in a difference‐in‐differences setting around the ECB's implementation of quantitative easing (QE) in 2015. We find that QE encourages households with larger initial bond positions to rebalance more toward second homes. Rebalancing is especially pronounced among higher income and church‐affiliated households with stronger tax incentives to purchase and rent out properties. We also show that, in regions more exposed to this channel, house prices increase more than rents, and sale listings decrease more than rental ones, suggesting that the rental supply may increase in response to QE.

Source: Journal of money credit and banking

DOI: 10.1111/jmcb.70038

Authors: DOMINIK BODDIN, DANIEL MARCEL TE KAAT, CHANG MA, ALESSANDRO REBUCCI

Institutions: Deutsche Bundesbank, University of Groningen, Fudan University, Johns Hopkins University, Centre for Economic Policy Research

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W7134195082

FWCI:

Cites: 35

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