The Boom and Bust of U.S. Housing Prices from Various Geographic Perspectives

Federal Reserve Bank of St. Louis Review, September/October 2012, pp. 341-368

Posted: 8 Aug 2016

See all articles by Jeffrey Cohen

Jeffrey Cohen

University of Connecticut - School of Business

Cletus C. Coughlin

Federal Reserve Bank of St. Louis - Research Division

David Lopez

Federal Reserve Banks - Research Division

Date Written: 2012

Abstract

This paper summarizes changes in housing prices during the recent U.S. boom and bust from various geographic perspectives. Nationally, the Standard & Poor’s/Case-Shiller house price index more than doubled in nominal terms during the boom and has fallen by roughly a third subsequently. During the boom, housing prices tended to rise much faster in metropolitan areas in the East and West Coast regions than in the country’s interior. After adjusting for inflation, 7 of 19 metropolitan areas have experienced real declines in housing prices from the start of the boom to the present. Although lower-priced houses showed a larger percentage increase during the boom, higher-priced houses fared relatively better over the boom and bust. Changes in land prices, which are not easily measured, appear to have driven housing prices to a greater extent than changes in the prices of housing structures. Internationally, seven countries experienced housing booms and busts; however, these countries tended to have larger booms and smaller absolute busts than the United States.

Keywords: Housing Markets, Housing boom and bust

JEL Classification: R3

Suggested Citation

Cohen, Jeffrey and Coughlin, Cletus C. and Lopez, David, The Boom and Bust of U.S. Housing Prices from Various Geographic Perspectives (2012). Federal Reserve Bank of St. Louis Review, September/October 2012, pp. 341-368. Available at SSRN: https://ssrn.com/abstract=2819584

Jeffrey Cohen (Contact Author)

University of Connecticut - School of Business ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

Cletus C. Coughlin

Federal Reserve Bank of St. Louis - Research Division ( email )

411 Locust St
Saint Louis, MO 63011
United States

David Lopez

Federal Reserve Banks - Research Division ( email )

P.O. Box 442
St. Louis, MO 63166-0442
United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
134
PlumX Metrics