Time-varying spillovers among regional housing markets in the United States: The role of monetary policy

This paper examines the dynamic relationships between the monetary policy and local housing markets, which are further divided into single-family and condo homes. By use of monthly housing returns and the shadow rate for four different regions in the United States (1999–2023), the findings support the view of delayed monetary policy effects; moreover, approximately 10% of housing spillovers can be attributed to monetary policy. Notably, the spillover effects are stronger for condo homes as an investment tool. Finally, the authorities must pay attention to South and West regions as the source region to ensure real estate market stability.