arbiter
JournalsAccount

An Unprecedented Housing Crisis in 2006–2009? Evidence From High‐Dimensional Dynamic Factor Model

MeiChi Huang

Bulletin of Economic Research2026https://doi.org/10.1111/boer.70050article
AJG 2ABDC B
Weight
0.50

Abstract

The study investigates the unprecedented nature of the housing crisis since 2006, utilizing the high‐dimensional dynamic factor model (DFM). The weakened capacities of old housing common factors in explaining state and Metropolitan Statistical Areas (MSA)‐level housing markets in the post‐crisis period provide supportive evidence for the unprecedented housing crisis. However, there is no evidence for instability in the disaggregate housing price and volume cycles, and the results indicate that the housing markets are hit by larger versions of old housing shocks as the crisis prevails nationwide. The predicted factors have superior performances in capturing housing prices than housing volumes in the post‐crisis period, and they fail to track large post‐2006 fluctuations in prices and their timings for some states and MSAs. The study sheds light on the challenge of monetary policies to stabilize the local housing markets, difficulties of risk management during the 2006–2009 crisis, and some investment diversification opportunities across disaggregate housing markets during 2011–2014.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1111/boer.70050

Or copy a formatted citation

@article{meichi2026,
  title        = {{An Unprecedented Housing Crisis in 2006–2009? Evidence From High‐Dimensional Dynamic Factor Model}},
  author       = {MeiChi Huang},
  journal      = {Bulletin of Economic Research},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/boer.70050},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

An Unprecedented Housing Crisis in 2006–2009? Evidence From High‐Dimensional Dynamic Factor Model

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.