Data and Code for: Quality-adjusted house price indexes


The constant-quality assumption in repeat-sales house price indexes (HPIs) introduces a significant time-varying attribute bias. The direction, magnitude, and source of the bias varies throughout the market cycle and across metropolitan statistical areas (MSAs). We mitigate the bias using a data-driven textual analysis approach that identifies and includes salient text from real estate agent remarks in the repeat-sales estimation. Absent the text, MSA-level HPIs are biased downwards by as much as 7% during the financial crisis and upwards by as much as 20% after the crisis. The geographic concentration of the bias magnifies its effect on local HPIs.

Transactions sold on the Multiple Listings Service platform across 9 MSAs. Smallest Geographic Unit: Property

Data preparation code provided.  Multiple Listings Service (MLS) data is proprietary but is available for purchase from the MLS.  See README file for more information.

Metadata Access
Creator Nowak, Adam; Smith, Patrick
Publisher ICPSR - Interuniversity Consortium for Political and Social Research
Publication Year 2020
Rights Download; This study is freely available to the general public via web download.
OpenAccess true
Contact ICPSR - Interuniversity Consortium for Political and Social Research
Resource Type Dataset; event/transaction data, text
Discipline Social Sciences