Credit Supply and Housing Speculation

Atif Mian, Amir Sufi

Research output: Contribution to journalArticlepeer-review

26 Scopus citations


Credit supply expansion boosts housing speculation and amplifies the housing cycle. The surge in private-label mortgage securitization in 2003 fueled a large expansion in mortgage credit supply by lenders financed with noncore deposits. Areas more exposed to these lenders experienced a large relative rise in transaction volume driven by a small group of speculators, and these areas simultaneously witnessed an amplified housing boom and bust. Consistent with the importance of belief heterogeneity, house price growth expectations of marginal buyers rose during the boom, while housing market pessimism among the general population increased.

Original languageEnglish (US)
Pages (from-to)680-719
Number of pages40
JournalReview of Financial Studies
Issue number2
StatePublished - Feb 1 2022

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


  • G10
  • G40
  • G51


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