• AEA in the news
  • November 16, 2017

Bloomberg View cites AER article about real estate

The London city skyline is shown at sunset.


Bloomberg View columnist Justin Fox cited an American Economic Review article published in February in a piece about how soaring real estate prices worsen inequality and slow growth. The AER article by Katharina Knoll, Moritz Schularick, and Thomas Steger examined the evolution of home prices in advanced economies since 1870. The authors showed that real house prices stayed constant from the 19th and mid-20th century, but have since risen substantially. Rising land prices were largely to blame, explaining about 80 percent of the global home price boom since World War II.