Data and Code for: The Propagation of Demand Shocks Through Housing Markets

Housing demand stimulus produces a multiplier effect by freeing up owners attempting to sell their current home, allowing them to re-enter the market as buyers. Exploiting a shock to first-time home buyer demand caused by a cut in mortgage insurance premiums, we find that homeowners buy their next home sooner when the probability of their current home selling increases. We build and calibrate a search model that explains these findings as a result of homeowners avoiding the cost of owning two homes simultaneously. Simulations demonstrate that stimulus to home buying generates a substantial multiplier effect, particularly in cold markets.<br><br>These files contain the code and data necessary for researchers with access to the requisite confidential and proprietary data sets to replicate the tables and figures in the paper.<br>