Reassessing the Magnitude of Housing Price Declines During the Depressions of the 1890s and 1930s

36 Pages Posted: 15 Nov 2019 Last revised: 20 Apr 2021

See all articles by Jonathan Rose

Jonathan Rose

Federal Reserve Bank of Chicago

Date Written: April 20, 2021

Abstract

This paper presents the first repeat sales index for residential housing in any US city spanning the late 19th and early 20th centuries, covering Baltimore from 1880 to 1953. Compared to previous data, the index shows larger declines in housing prices during the Depressions of the 1890s and 1930s. I also find higher leverage entering into those periods than previously understood. I conclude that negative equity in the 1930s was a bigger problem than implied by existing data, rationalizing the extent of foreclosures that occurred.

Keywords: real estate prices, economic history, great depression

JEL Classification: N11, N12, N21, N22, N91, N92, G12, R3

Suggested Citation

Rose, Jonathan, Reassessing the Magnitude of Housing Price Declines During the Depressions of the 1890s and 1930s (April 20, 2021). Available at SSRN: https://ssrn.com/abstract=3224743 or http://dx.doi.org/10.2139/ssrn.3224743

Jonathan Rose (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

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