The long-term relationship between the US housing market and HNWIs

Abstract

Purpose

The authors analyze the long-term relationship between the US housing market and the concentration of high net worth individuals.

Design/methodology/approach

The authors apply a cointegration and causality approach on a ten years database. The database includes by US state the density of high net worth individuals, the house price index, the homeownership rate, the number of housing units, and the privately-owned housing units authorized by building permits.

Findings

The results show a limited cointegration between the concentration of US wealthy households and the housing market. Thus, the authors can partly predict the fluctuations transmission from the housing market to wealthy households.

Originality/value

The authors suggest that our findings could be of interest to wealthy households, real estate professionals, and public authorities.

Citation

Le Fur, E. (2023), "The long-term relationship between the US housing market and HNWIs", Managerial Finance, Vol. 49 No. 3, pp. 421-442. https://doi.org/10.1108/MF-02-2022-0087