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The long-run relationship between house prices and income evidence from local housing markets

By: Language: English Series: Real Estate Economics ; 34(3) 2006, 417-438(22)Publication details: 2006Subject(s): Summary: Examines the argument that house prices are related to income, in that where house price rises exceed rises in income levels, house prices are seen as being out of line with fundamentals and a stagnation or fall in house prices is expected, to allow income to catch up. Concludes that there is little evidence for such a cointegration of house prices and fundamentals in that the level of house prices does not seem to have a stable long-term equilibrium relationship with the level of fundamentals such as income.
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Journal article London Journal article L135134 (Browse shelf(Opens below)) 1 Available 135134-1001

Examines the argument that house prices are related to income, in that where house price rises exceed rises in income levels, house prices are seen as being out of line with fundamentals and a stagnation or fall in house prices is expected, to allow income to catch up. Concludes that there is little evidence for such a cointegration of house prices and fundamentals in that the level of house prices does not seem to have a stable long-term equilibrium relationship with the level of fundamentals such as income.