Economic Consequences of Housing Speculation

This paper supersedes an earlier draft circulated under the title “Housing Speculation and Supply Overhang.” We are grateful to Gene Amromin, Barney Hartman-Glaser, Andrew Haughwout, Zhiguo He, Tim Landvoigt, Alvin Murphy, Charlie Nathanson, Monika Piazzesi, and seminar participants at the Federal Reserve Bank of New York, the University of Texas at Austin, the Wharton School, the American Economic Association Meetings, the American Finance Association Meetings, the CICF meetings, and the FRB Atlanta, GSU Real Estate Finance, and Texas Finance Festival Conference for helpful comments and discussion. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.