Speaker Series | Supply Constraints Do Not Explain House Price and Quantity Growth Across U.S. Cities
Federal Reserve Bank of San Francisco Economist John Mondragon will present on his recently co-authored paper, “Supply Constraints Do Not Explain House Price and Quantity Growth Across U.S. Cities”, which explores whether housing supply constraints affect local market growth, challenging the view that geographic and regulatory limits explain price and quantity differences across cities. Instead, researchers found cities experience identical price and quantity growth relative to income regardless of their supply elasticity. Their paper suggests that looking more broadly at the quantity and quality of housing stock and homeowner preferences regarding those two factors helps to explain local housing dynamics, implying that relaxing regulatory housing supply constraints may not affect housing affordability.
John Mondragon is a Research Advisor in the Finance section of the Economics Research Department. He joined the Federal Reserve Bank of San Francisco in March 2020. Prior to joining the Federal Reserve Bank of San Francisco, John was an assistant professor of Finance at the Kellogg School of Management, Northwestern University starting in 2015. He has also been a visiting scholar at the Yale School of Management, the Federal Reserve Bank of Philadelphia, and the Federal Reserve Bank of San Francisco. John’s research interests are primarily in the mortgage market, housing markets, and the regulation of financial markets.