Segmented Housing Search

88 Pages Posted: 12 Jan 2015 Last revised: 26 May 2023

See all articles by Monika Piazzesi

Monika Piazzesi

Stanford University; University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Martin Schneider

Stanford University

Johannes Stroebel

New York University (NYU) - Leonard N. Stern School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2015

Abstract

We study housing markets with multiple segments searched by heterogeneous clienteles. In the San Francisco Bay Area, search activity and inventory covary negatively across cities, but positively across market segments within cities. A quantitative search model shows how the endogenous flow of broad searchers to high-inventory segments within their search ranges induces a positive relationship between inventory and search activity across segments with a large common clientele. The prevalence of broad searchers also shapes the response of housing markets to localized supply and demand shocks. Broad searchers help spread such shocks across many segments and thereby reduce their effect on local market activity.

Suggested Citation

Piazzesi, Monika and Schneider, Martin and Stroebel, Johannes, Segmented Housing Search (January 2015). NBER Working Paper No. w20823, Available at SSRN: https://ssrn.com/abstract=2548343

Monika Piazzesi (Contact Author)

Stanford University ( email )

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University of Chicago - Booth School of Business ( email )

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National Bureau of Economic Research (NBER) ( email )

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Martin Schneider

Stanford University ( email )

Stanford, CA 94305
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Johannes Stroebel

New York University (NYU) - Leonard N. Stern School of Business ( email )

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New York, NY NY 10012
United States

National Bureau of Economic Research (NBER) ( email )

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Centre for Economic Policy Research (CEPR) ( email )

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United Kingdom

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