PT  - JOURNAL ARTICLE
AU  - Wenz, Michael G.
AU  - Yu, William Wei-Choun
TI  - Housing Price Fundamentals through the Business Cycle
DP  - 2016 Dec 30
TA  - European Journal of Business Science and Technology
PG  - 91--106
VI  - 2
IP  - 2
AID - 10.11118/ejobsat.v2i2.55
IS  - 23366494
AB  - We examine the fundamental determinants of nominal home price growth from 1995 to 2012 across 300 metropolitan areas in the U.S. This sample period provides a trough-to-trough time period that allows for analysis through a complete business cycle. By using a supply-to-demand ratio for home price appreciation, we identify a straightforward and powerful method for predicting home price appreciation across markets. We suggest an alternative and simple method for addressing endogeneity in house prices and include a comprehensive measure of human capital. We find five significant factors: home supply growth, personal income growth, human capital, an ocean dummy, and geographic constraint.