Is Money Supply or Housing Supply the Cause of High House Prices? A List of References

I have written several articles in this blog on the causes of high housing prices, and they can be categorized into two main strands, namely (1) insufficient land or housing supply, and (2) too much money supply. Here is the list of literature for reference, including a list of references of my articles on this issue.

International References

Bramley, G. and Watkins, D. (2016) Housebuilding, demographic change and affordability as outcomes of local planning decisions: Exploring interactions using a sub-regional model of housing markets in England, Progress in Planning 104, 1–35

Cheung, Y.W., Chow, K.K. and Yiu, M.S. (2017) Effects of Capital Flow on the Equity and Housing Markets in Hong Kong, HKIMR Working Paper #01/2017, Hong Kong Institute for Monetary Research.

Chow, H.K. and Xie, T. (2016) Are House Prices Driven by Capital Flows? Evidence from Singapore, Journal of International Commerce, Economics and Policy, 7(1), 1–21.

Huang, J., Shen, G.O. and Zheng, H.W. (2015) Is insufficient land supply the root cause of housing shortage? Empirical evidence from Hong Kong, Habitat International 49, 538–546.

Lai, N. and Wang, K. (1999). Land-Supply Restrictions, Developer Strategies and Housing Policies: The Case in Hong Kong. International Real Estate Review, 2(1), 143–159.

Leung, C.K.Y. and Tang, E.C.H. (2015) Availability, Affordability and Volatility: The Case of the Hong Kong Housing Market, International Real Estate Review 18(3), 383–428.

Ling-Hin Li, Siu Kei Kelvin Wong, Ka Shing Cheung (2016) Land supply and housing prices in Hong Kong: The political economy of urban land policy, Environment and Planning C: Politics and Space Vol 34, Issue 5, 2016,

Favara, G. and Imbs, J. (2015) Credit Supply and the Price of Housing, The American Economic Review 105(3), 958–992.

Favilukis, J., Ludvigson, S. and Nieuwerburgh, S. V. (2017) Macroeconomic implications of housing wealth, housing finance, and limited risk-sharing in general equilibrium. Journal of Political Economy 125, 140–223.

Ghollpour, H.F. (2013) The effect of foreign real estate investments on house prices: evidence from emerging economies, International Journal of Strategic Property Management 17(1),

Guest, Ross S. and Rohde, Nicholas (2017) The Contribution of Foreign Real Estate Investment to Housing Price Growth in Australian Capital Cities (September). Abacus, Vol. 53, Issue 3, pp. 304–318. Available at SSRN:

Himmelberg, C., Mayer, C. and Sinai, T. (2005) Assessing high house prices: Bubbles, fundamentals, and misperceptions. Journal of Economic Perspectives 19, 67–92.

Justiniano, A., Primiceri, G.E. and Tambalotti, A. (2015) Credit Supply and the Housing Boom, Federal Reserve Bank of New York — Staff Report №709, Feb.

Landvoigt, T., Piazzesi, M. and Schneider, M. (2015) The housing market(s) of San Diego. American Economic Review 105, 1371–407.

Mian, A., and Sufi, A. (2009) The consequences of mortgage credit expansion: Evidence from the U.S. mortgage default crisis. Quarterly Journal of Economics 124, 1449–96.

Mian, A., and Sufi, A. (2011) House prices, home equity-based borrowing, and the US household leverage crisis. American Economic Review 101, 2132–56.

Richter, M. and Werner, J.G. (2016) Conceptualising the Role of International Capital Flows for Housing Markets, Intereconomics, 1–9. DOI: 10.1007/s10272–016–0593-z

Ryan-Collins, J. (2019) Breaking the housing-finance cycle: Macroeconomic policy reforms for more affordable homes, Environment and Planning A: Economy and Space.

Sa, S,F. and Wieladek, T. (2011) Monetary Policy, Capital Inflows, and the Housing Boom, Working Paper №80, Globalization and Monetary Policy Institute, Federal Reserve Bank of Dallas, US.

Sa, F. (2017) Effect of Foreign Investors on Local Housing Markets: Evidence from the UK, working paper, School of Management & Business, Kingís College London.

Tillmann, P. (2013), Capital Inflows and Asset Prices: Evidence from Emerging Asia, Journal of Banking and Finance, 37, 717–729.

Wokker, C. and Swlerings, J. (2016) Foreign Investment and Residential Property Price Growth, Treasury Working Paper 2016–03, Australian Government.

Yiu, M.S. and Sahminan, S. (2017) Global Liquidity, Capital Inflows and House Prices in ASEAN Economies, International Real Estate Review, 20(1), 105–126.

New Zealand References:

Parker, C. (2015) Housing Supply, Choice and Affordability: Trends, Economic Drivers, and Possible Policy Interventions, Auckland Council, New Zealand.

Auckland Council (2016) Land Supply Constraints and Housing Prices in New Zealand, Technical Report 2016/038,

Nunns, P. (2019) The Causes and Economic Consequences of Rising Regional Housing Prices in New Zealand, Centre for Applied Research in Economics, Working Paper №005, Department of Economics, University of Auckland.

References of My articles:

Yiu, C.Y. (2020) Debt is the Ultimate Cause of Housing Bubbles — a Literature Review, Medium June 28.

Yiu, C.Y. (2020) Does Supply Determine Price or Price Determines Supply? A Case in the Oil Price Change, Medium April 21.

Yiu, C.Y. (2019) Housing Price Hikes Caused by Real Effective Exchange Rate Changes, Medium May 27.

Yiu, C.Y. (2019) A New Cause of Unaffordable Housing — that Explain Why More Supply Cannot Help, Medium May 13.

Yiu, C.Y. (2019) Housing Price Hikes in Hong Kong Must NOT (Purely) Due to Insufficient Supply, Medium April 20.

Yiu, C.Y. (2019) Change of Australia Housing Prices is found to be mostly caused by Changes in Real Interest Rates, Medium April 12.

Yiu, C.Y. (2019) Real Interest Rate Effect on Housing Price Cycles, Medium Mar 12.

ecyY is the Founder of Real Estate Development and Building Research & Information Centre REDBRIC

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