Macroeconomic Factors Affecting Housing Prices: Take the United States as an Example

DOI

10.2991/aebmr.k.220307.380How to use a DOI?

Keywords

Housing price; Stock growth; Mortgage rates; Unemployment rates; Population growth

Abstract

Residential real estate takes the largest part of asset market in the United States. This study investigates how changes in macroeconomic variables affect changes in housing prices, using time series data from 191 observation samples in the United States over the past 15 years. The dataset was collected from FRED and analysed by Stata/IC 16.1. Based on the model of multiple linear regression, the main results show that stock growth and economic growth are the major indicators of the rise of the housing price index. In contrast, mortgage rates and unemployment rates will have a negative effect on housing price. It is worth noting that in the regression model with 5% significance level, population growth as a determinant is not statistically significant. Compared with the existing literature, the main contribution of this paper is the relatively updated data in recent severe environments (Great Depression and COVID-19) to reinforce key discoveries.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Xinying Ding
PY  - 2022
DA  - 2022/03/26
TI  - Macroeconomic Factors Affecting Housing Prices: Take the United States as an Example
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2335
EP  - 2339
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.380
DO  - 10.2991/aebmr.k.220307.380
ID  - Ding2022
ER  -