Annual Cost of Housing


Mortgage Market Meltdown and House Prices: As noted in the NY Times (see link below) Professor Mayer discusses how the recent credit crunch is contributing to substantial house price declines and provides some data analysis based on his earlier work.  (to read the note—click here)

New York Times Article:  The article "In Their Various Ways, Economists Try To Find the Right Price for a Home" from August 8th, 2008.   The author of the  article interviews  a number of different economists, including Professor Chris Mayer, about their models for the housing market and asks what these model imply for the correct price of housing given the current credit crunch.


We provide MSA level data on the annual cost of home ownership. These data are first presented in

Himmelberg, C., C. Mayer and T. Sinai. 2005. “Assessing High House Prices: Bubbles, Fundamentals, and Misperceptions” Journal of Economic Perspectives. Fall, 19:4, pp. 67-92. 

Data: Annual Cost of Ownership
Program: Annual Cost of Ownership

Graph: Annual Cost of Ownership vs. Rent Case-Shiller
Graph: Annual Cost of Ownership vs. Income Case-Shiller

Case Shiller house price data is reported through May 2008.

Graph: Annual Cost of Ownership vs. Rent OFHEO
Graph: Annual Cost of Ownership vs. Income OFHEO

OFHEO house price data is reported through Q1 2008.


STATA© was used to process all data. This dataset integrates data from the following sources:

  1. Bureau of Economic Analysis (Public): Per-Capita Income
  2. Bureau of Labor Statistics (Public):  Consumer Price Index
  3. Emrath, P. 2002. “Property Taxes in the 2000 Census.” Housing Economics. December, 50:12, pp. 16-21.: Property Tax Rates
  4. Gyourko, J., C. Mayer and T. Sinai. 2006. “Superstar Cities” NBER Working Paper.: Long Run (1950 - 2000) House Price Appreciation by MSA
  5. NBER -- TAXSIM (Subscription): Federal Marginal Income Tax Rates
  6. Office of Federal Housing Enterprise Oversight (Public): Both National & MSA Level House Price Index
  7. Philidelphia Federal Reserve (Public): 1 & 10 Yr. Expected Inflation
  8. REIS (Subscription): MSA Level Rent Data
  9. St. Louis Federal Reserve (Public): 1 Yr. T-Bill; 10 Yr. T-Bill; 30Yr. Fixed Rate Mtg. Rate; 30 Yr. Inflation Indexed T-Bill
  10. S & P's Case-Shiller Home Price Indices (Public) : Home Price Index by MSA

More specific links to or citations of all sources are included at the top of the program file.

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