Housing Is the Financial Cycle: Evidence from 100 Years of Local Building Permits

Author(s):Gustavo Cortes and Cameron LaPoint Date:November, 2024 Abstract: Does the housing market lead the financial cycle? We address this question by creating a new hand-collected database spanning a century of monthly building permit quantities and valuations for all U.S. states and the 60 largest MSAs. We show that the option to build embedded in permits[…]