Externalities of residential property flipping

作者：Lingxiao Li, Abdullah Yavaş, Bing Zhu · 发表于：Real Estate Economics · 年份：2022 · DOI：10.1111/1540-6229.12413 · 被引用次数：6 · 研究领域：Housing Market and Economics、Financial Literacy, Pension, Retirement Analysis、Housing, Finance, and Neoliberalism

Abstract This study investigates whether flipping activities impose an externality on the transaction prices of the neighboring nonflipped properties. Using a data set of residential property transactions in Clark County, Nevada for the period 2003–2013, we find that flippers impose a significant positive impact on the price of neighboring nonflipped properties in an up market, but a significant negative effect in a down market. This procyclical impact of flipping activity contributes to the volatility of housing prices, hence magnifying boom and bust cycles and increasing the likelihood of a mortgage crisis.