Determinants of Real Estate Prices in the United States
| Author: | Bc. Michaela Hronová |
|---|---|
| Year: | 2022 - summer |
| Leaders: | Mgr. Roman Kalabiška |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 82 |
| Awards and prizes: | |
| Link: | https://dspace.cuni.cz/handle/20.500.11956/175612 |
| Abstract: | This thesis aims to examine the fundamental determinants of real estate prices in the United States using State level quarterly data over a time period of 21 years. Determinants from both the supply and demand sides are used for the analysis. After the determination of non-stationary variables and further confirmation of a single cointegrated relationship between home values and personal income variables, the ARDL model was implemented. With the use of the ARDL model, the effect of selected variables on home values was analyzed as well as the error correction term, which estimates the speed of adjustment towards the equilibrium following a change in other variables. From the supply factors, the regression revealed a positive effect of building permits which were significant in all 9 divisions, and a negative effect of homeowner vacancy rates which were significant in 6 divisions. From the demand factors, personal income per capita was identified as the main determinant together with unemployment, population growth, and marriage rates. |
