Factors Impacting the US Housing Market

This research will evaluate the housing market and the factors that have the greatest impacts on it. The housing market has a massive impact on the United States economy as a whole. By determining which factors have the greatest impact on the housing market, there will be ways to measure the health of the housing market to prevent; md prepare for future housing bubbles and crashes, like the one that occurred in the mid-2000s. Previous research on the housing market has been done, but there is not a concise set of factors that impact the housing market. Nafeesa Yunus and Peggy E Swanson researched and evaluated how the markets interact among different regions of the country. Karl Case and Robert Shiller found factors that impact the market; however they found variability between states. In addition, their research was performed in 2003, a few years before the housing bubble crashed. Ranhan Gupta and Sonali Das researched how to predict future downturns in the housing market. Using data from the 20 largest states in the US economy, they used Vector Autoregressive models and Rood Mean Square Errors to make their predictions. Johnathan Kohn and Sarah Bryant researched variables that impact the housing bubble, and the correlation between the variables. By using econometric estimation and Eviews software, many different variables will be evaluated with the stability of the US housing market. Variables that will be assessed include, but are not limited to: new home sales, median asking rents, the consumer price index, gross domestic product, and ease of credit. By including the nation as a whole, including different variables; and using time-series data, this estimation will give a different perspective than previous research on the topic. These results will help to assess the housing market’s stability and improve the stability of the economy as a whole