Labor Demand Shocks and Housing Prices Across the United States: Does One Size Fit All?. Issue 3 (August 2019)

• Record Type: Journal Article
• Authors: Osei, Michael J.; Winters, John V.
• Is Part Of: Economic development quarterly. Volume 33:Issue 3(2019)
• Page Start: 212
• Page End: 219
• Publication Date: 2019-08
• Subjects: housing prices -- labor demand shocks -- labor market -- housing market; Economic development -- Periodicals; Economics -- Periodicals; United States -- Economic conditions -- Periodicals; 330.973
• DOI: 10.1177/0891242419846371
• Languages: English
• ISSNs: 0891-2424

Abstract

This study examines whether effects of labor demand shocks on housing prices vary across time and space. Using data on 321 U.S. metropolitan statistical areas (MSAs), the authors estimate the medium- and long-run effects of increases in MSA-level employment and total labor income on housing prices. Instrumental variable estimates for different time periods, and also for coastal, noncoastal, large, and small metropolitan statistical areas, are obtained using the shift-share instrument. Results suggest that labor demand shocks have positive effects on housing prices; however, these effects appear to vary across time periods and across different types of MSAs.