Nonbank Growth and Local Housing Booms
◈ 주 제 : Nonbank Growth and Local Housing Booms
◈ 발표자 : Hyun-Soo Choi (KAIST)
◈ 일 시 : 2024년 12월 04일 수요일 16:30 ~ 17:45
◈ 장 소 : 우석경제관(223동) 405호
◈ 주 관 : 경제학부, 경제연구소 한국경제혁신센터, SSK, BK21
Nonbank Growth and Local Housing Booms
Abstract:
We study the effect of uneven nonbank mortgage expansion on localized housing mar- ket dynamics. Leveraging the local conforming loan-eligible share as an instrument for nonbank credit supply, we show that increased nonbank lending drives housing booms, characterized by rapid home price appreciation, rising transaction volumes, and intensi- fied market competition. The effects of nonbank credit are especially persistent in census tracts near affluent neighborhoods, potentially by facilitating gentrification, while more short-lived in areas further from these neighborhoods. Additionally, we demonstrate that nonbank credit expansion has contributed to narrowing within-county price disparities across neighborhoods, thereby reshaping wealth distribution. Our findings highlight the crucial role of nonbank credit in housing market trends and household welfare.
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