New Working Paper - Housing Supply and Policy - MIT Center for Real Estate

New Working Paper – Housing Supply and Policy

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The Center for Real Estate periodically publishes the Working Paper Series which provides a vehicle for faculty, research associates, fellows, and visiting scholars to highlight their research.

Below is the most recent submitted working paper:

  1. Brief Thoughts on Housing Supply and Policy* – Albert Saiz
  • Raising housing prices are coming to garner substantial interest
    from policymakers and the public. In this short piece, I focus on
    elucidating the key interactions between supply and demand that
    generate macroeconomic problems and lack of affordability. I make a
    distinction between short run and long run housing supply. The main
    conclusions are not new: policymakers should be aware of the
    Tinbergen rule and use multiple tools to address the multiple problems
    arising from housing markets. I also argue that countercyclical supplyside
    policies can be particularly damaging. I further advocate for better
    data-driven mortgage underwriting models that go beyond mark-tomarket
    and try to forecast future equilibrium prices. Finally, I make
    an argument for a return to ambitious master-planned city-building
    endeavors in Europe’s most expensive cities.

* This working paper is the companion of a homonymous presentation in the conference 
about housing markets organized by the Nederlandsche Bank in Amsterdam on May 24-25, 2018.
A revised version of this document is expected to be published in the volume: “Hot
Property – The Housing Market in Major Cities.” Lohuis, Melanie; Nijskens, Rob; Hilbers,
Paul; and Heeringa, Willem (Editors). Willey, Amsterdam (forthcoming).

New Working Paper – Housing Supply and Policy