US housing prices and the transmission mechanism of connectedness

This research examines the connectedness effects of US house prices across different metropolitan areas, utilizing a quantile connectedness model. We identify MSAs that could play a significant role in the transmission of house prices, either as net contributors or recipients of these effects. The level of quantiles emerges as another crucial factor, influencing the behavior of various metropolitan areas across different house price ranges. Denver, Los Angeles, Seattle, Phoenix, San Diego, and San Francisco exhibit net-contributing behavior, whereas Chicago, Detroit, Las Vegas, Minneapolis, New York, and Atlanta show a net-receiving trend. Metropolitan areas like Portland, Boston, Charlotte, Cleveland, Dallas, Miami, Tampa, and Washington display roles that can either be contributing or receiving over the time period. Lastly, external factors such as economic crises or health events like the Covid-19 outbreak play a pivotal role in shaping MSAs' behavior.