SFS Cavalcade North America 2024
Georgia State University | May 19-22, 2024
Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 1st May 2025, 03:16:35pm EDT
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Session Overview |
Session | ||
Track W1-4: Real Estate
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Presentations | ||
Frictional and Speculative Vacancies: The Effects of an Empty Homes Tax 1University of Wisconsin at Madison; 2University of Waterloo In this paper, we study the implications of a vacant home tax for housing availability and affordability. We develop a model with owner-occupied homes, tenanted rental units, and empty houses. Housing units are constructed by competitive developers and supplied to local households, but can also be sold to investors as a store of wealth. Empty homes held by investors are classified as speculative vacancies. Frictional vacancies, on the other hand, are the equilibrium result of search-and-matching frictions in the owner-occupied market. A tax on empty homes can improve housing availability and affordability in the rental market by reducing speculative vacancies, but can dis- tort the incentives to supply vacant homes for sale in the owner-occupied market (i.e., frictional vacancies), thereby increasing house prices and lowering home-ownership. Empirical predictions derived from the calibrated model are consistent with the pat- terns we observe for listings, sales, prices and rents in Vancouver following the recent implementation of an empty homes tax.
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