| Description |
1 online resource (46 pages) |
| Series |
1\ IMF Working Papers, 1018-5941 |
|
IMF Working Papers; Working Paper ; No. 2023/015
|
| Summary |
During the past two decades, the commercial real estate (CRE) market has been impacted by major disruptions, including the global financial crisis and the Covid-19 pandemic. Using granular data from the U.S., we document how these crises have unfolded and elaborate on the role of heterogeneity and underlying shocks. Both a set of reduced-form approaches and a structural framework suggest a prominent role for demand-side local factors in the short run, along with significant shifts in preferences during crisis episodes. However, valuations become more closely linked to macro-financial factors over the long term. A one-standard deviation tightening in financial conditions is associated with a drop of about 3\% in CRE prices in the following quarter, with a stronger impact on the retail sector and milder effects in states where household indebtedness is lower |
| Notes |
Description based on print version record |
| Form |
Electronic book
|
| Author |
Badarinza, Cristian
|
|
Mahoney, Elizabeth
|
|
