Constructing Indices of the Price of Multifamily Properties Using the 1991 Survey of Residential Finance

THE J. OF REAL ESTATE FINANCE AND ECONOMICS, Vol. 14 No. 1

Posted: 14 Feb 1997

See all articles by James R. Follain

James R. Follain

Federal Home Loan Mortgage Corporation (FHLMC); National Bureau of Economic Research (NBER)

Charles A. Calhoun

Calhoun Consulting

Abstract

Indices of the price of constant quality owner-occupied single family housing are widely available and have been instrumental in learning about the operations of the market for owner-occupied housing. Such is not the case for multifamily rental housing. The purpose of this paper is to provide information about movements in the price of multifamily properties during the 1980s and early 1990s using the 1991 Residential Finance Survey (RFS). Several conclusions are drawn from the development and analysis of indices of the price of multifamily housing for the nation and four large states (California, Florida, New York, and Texas). First, indices for the period 1983-1991 generate similar patterns among the various methods employed; furthermore, movements in the index during the period 1983-1991 seem reasonable. Second, much regional variation exists. Prices in Texas were particularly hard hit, falling by over 25 percent in nominal terms between 1983 and 1991. Third, the impact of the Tax Reform Act of 1986 does not appear to have been as dramatic as some have suggested. Indeed, price declines do not show up in either the 1986 or 1987 indices for the nation, California, or New York.

JEL Classification: R38

Suggested Citation

Follain, James R. and Calhoun, Charles A., Constructing Indices of the Price of Multifamily Properties Using the 1991 Survey of Residential Finance. THE J. OF REAL ESTATE FINANCE AND ECONOMICS, Vol. 14 No. 1, Available at SSRN: https://ssrn.com/abstract=9221

James R. Follain (Contact Author)

Federal Home Loan Mortgage Corporation (FHLMC) ( email )

8200 Jones Branch Road
McLean, VA 22101
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Charles A. Calhoun

Calhoun Consulting ( email )

4837 King Solomon Drive
Annandale, VA 22003
United States
703-978-3495 (Phone)
703-978-1933 (Fax)

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