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Uninformed buyers may pay more when purchasing complex assets, such as houses. This paper compares local house buyers who are later foreclosed with those not foreclosed for various buyer-types, namely, owner-occupier households, investor-companies, second-home buyers, and small-scale investors. Data from one of the foreclosure epicenters, Orange County, Florida, reveal that subsequent foreclosures are associated with higher prices for comparable housing at the time of purchase. The premium paid by buyers between 2000 and 2007 who experience foreclosure after 2007 is larger closer to the 2007 market peak, approaching 3 percent. We find considerable heterogeneity across buyer-types. In particular, foreclosed second-home buyers and small-scale investors systematically pay more, while investor-companies and owner-occupiers do not. The pattern is consistent with the hypothesis that the premium paid by foreclosed households reflects poor information or limited financial acumen. • This paper compares buyers who are later foreclosed with those not foreclosed. • Buyer include investor-companies, owner-occupiers, second-home buyers, and small-scale investors. • Data cover one of the foreclosure epicenters, Orange County, Florida. • We find that buyers who experience foreclosure after 2007 pay more for comparable housing. • We find considerable heterogeneity across buyer-types. [ABSTRACT FROM AUTHOR]

This paper develops and solves a spatiotemporal equilibrium model in which regional wages and house prices are jointly determined with location-to-location migration flows. The agent's optimal location choice and the resultant migration process are shown to be Markovian, with the transition probabilities across all location pairs given as non-linear functions of wage and housing cost differentials, endogenously responding to migration flows. The model can be used for the analysis of spatial distribution of population, income, and house prices, as well as for spatiotemporal impulse response analysis. The model is estimated on a panel of 48 mainland U.S. states and the District of Columbia using the training sample (1976–1999), and shown to fit the data well over the evaluation sample (2000–2014). The estimated model is then used to analyze the size and speed of spatial spill-over effects by computing spatiotemporal impulse responses of positive productivity and land-supply shocks to California, Texas, and Florida. Our simulation results show that states with a lower level of land-use regulation can benefit more from positive state-specific productivity shocks; and positive land-supply shocks are much more effective in states, such as California, that are subject to more stringent land-use regulations. • We propose a spatiotemporal equilibrium model of the housing market. • The dynamics of location-to-location migration flows are explicitly modeled. • The estimated model is used to analyze the size and speed of spatial spill-over effects. • States with less land-use regulation benefit more from positive productivity shocks. • Land-supply shocks are more effective in states with stringent land-use regulations. [ABSTRACT FROM AUTHOR]

• Since the Great Recession, single-family rentals have increased as a share of the housing units within America's neighborhoods. • Homeowners are concerned that single-family rentals will lower their neighborhood's quality and have an adverse effect on their property values. • Results show that an increase in single-family rentals as a share of a neighborhood's housing units lower house values. • The negative effects of single-family rentals on a neighborhood's house values vary by type of rental and neighborhood. • Estimated models control for the endogeneity of single-family rentals and sample selection. Since the Great Recession, single-family rentals have increased as a share of the housing units within America's neighborhoods. Homeowners are concerned that this shift in housing tenure will lower their neighborhood's quality and have an adverse effect on their property values. However, no current evidence exists on whether these concerns have any validity. In this paper, we utilize a six-year balanced panel of neighborhoods from the state of Florida's metropolitan areas to study the impacts that single-family rentals have on the values of single-family homes. Our case for causality is buttressed by estimating house value models that include time and neighborhood fixed effects, treat the rentals as endogenous variables, and control for sample selection and changes in neighborhood demographics and land uses. Our results show that share increases in single-family rentals lower house values, but the effects vary between central cities and suburbs, across neighborhoods of different income levels and density, by the price of the rental unit, and whether the owner has a mailing address outside the state of Florida. [ABSTRACT FROM AUTHOR]