How tightening mortgage credit raises rents and increases inequality in the housing market

Ce ma infricoseaza/ingrijoreaza?

Steadily increasing rents and historically high house prices in many euro area countries are forcing many households to devote ever more of their income to housing. This column examines the impact of tighter credit conditions adopted in the aftermath of the global financial crisis on inequality in the housing market. The authors find that shocks that reduce households’ access to mortgage credit, including both borrower-based limits and increases in the real interest rate, negatively impact