Housing Investors and the Transmission of Monetary Policy


First, we analyze a detailed model of rental markets with both retail and institutional landlords. Household can decide whether to be retail landlords, homeowners or renters depending primarily on their age, and wealth. The model generates endogenous differences in rental supply elasticities for different investors. We show that such elasticities are key for the reaction of aggregate consumption and housing variables to changes in monetary policy (MP). When rental supply is elastic, MP operates mainly through the reaction of the wannabe homebuyers and retail landlords. When it is inelastic, the main channel is rent affordability. Second, we construct a rich database of investors’ presence and evaluate empirically the previous results.


If you have any questions regarding the seminar, please contact the seminar organizers Antoine Bertheau or Camilla Nesfossen Hopsdal