Housing markets and inequality

From a working paper by Dirk Bezemer and Anna Samarina:

“These results suggest that ‘debt shift’ may be one of the factors explaining recent
trends in income inequality. Credit to real estate asset markets results in rising capital
gains and growth of incomes connected to the real estate sector. Since these incomes
are concentrated among rich households, this widens income disparities. In support,
we find that mortgage credit increases the income share of households in the top 10%
of the income distribution.”

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Posted by at 8:13 AM

Labels: Global Housing Watch


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