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作者

Patrick S. Smith;Crocker H. Liu

来源

REAL ESTATE ECONOMICS,Vol.48,Issue3,P.673-709

语言

英文

关键字

作者单位

E-mail address: patrick.smith@sdsu.edu San Diego State University, Finance Department, Fowler College of Business, 5500 Campanile Drive, San Diego, CA, 92182 E-mail address: patrick.smith@sdsu.edu, E-mail address: chl62@cornell.edu;E-mail address: chl62@cornell.edu Cornell University, The Hotel School Cornell, SC Johnson College of Business, 440 Statler Hall, Ithaca, NY, 14853 E-mail address: patrick.smith@sdsu.edu, E-mail address: chl62@cornell.edu

摘要

We examine institutional investors’ entry into the equity side of the single‐family detached housing market using an asset illiquidity framework. We find that institutional investors purchased owner‐occupied houses after the real estate crisis for approximately 6.3–11.8% less than owner‐occupiers. The large discount was in addition to distressed sale and cash purchase discounts which, when combined, highlight the low liquidation value for owner‐occupied housing. The results suggest that asset illiquidity is an important cost of leverage in the owner‐occupied housing market.