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Can the BH&J Buy vs. Rent Index Anticipate Housing Price Movements?
- Source :
-
Journal of Housing Research . 2020, Vol. 29 Issue 1, p20-33. 14p. - Publication Year :
- 2020
-
Abstract
- This paper investigates whether and to what extent the Beracha, Hardin, and Johnson Buy vs. Rent Index (BH&J Index) is able to anticipate future housing price movements. The BH&J Index is based on a model introduced by Beracha and Johnson (2012) in which a low index value is associated with a buy recommendation and a high index value is associated with a rent recommendation. The results of our analysis reveal a negative relation between the BH&J Index value and future housing price changes at the metropolitan level, which is consistent with the buy or rent recommendation of the index. The negative relation between the BH&J Index value and future housing price changes is statistically significant, economically meaningful, and is particularly relevant for medium-term holding periods. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 10527001
- Volume :
- 29
- Issue :
- 1
- Database :
- Academic Search Index
- Journal :
- Journal of Housing Research
- Publication Type :
- Academic Journal
- Accession number :
- 146971440
- Full Text :
- https://doi.org/10.1080/10527001.2020.1831827