*Names in bold indicate Presenter
Remodeling decisions by homeowners are an important factor in the evolution of housing supply in the United States, playing a significant role in determining the evolution of house prices. To the authors’ knowledge, not many recent studies have analyzed the connection between investment decisions in home maintenance and improvements and house prices (Leventis, 2007; Downing and Wallace, 2001; Plaut and Plaut, 2010; Fisher and Williams, 2011).
Our paper spans the housing boom and bust in the U.S., based on bi-annual national American Housing Survey data sets from 2001 (at the beginning of the national house price bubble), over 2005 (just before the national house price bubble peaked), over 2007 (just after the national house price bubble crashed) to 2011 (when the national house price crash might have hit bottom).
We ask the following research questions:
1. How has inflation-adjusted home value estimated by the homeowner changed from 2001 to 2011?
2. How have inflation-adjusted investments in home maintenance and improvements changed from 2001 to 2011?
3. What factors affect inflation-adjusted investments in home maintenance and improvements from 2001 to 2011?
Very preliminary results indicate that factors affecting remodeling investments vary by the change in housing value and the estimated return (if the unit were remodeled). The effect also varies geographically. Results will be refined and discussed in the public policy context.
- Anacker_Li_APPAM2014_100414.pdf (126.2KB)