Fannie Mae Foundation

This article reports residential real estate price indices computed from the Metropolitan Statistical Area American Housing Survey for 1984 through 1992. It extends the hedonic price indices reported earlier to metropolitan areas surveyed during those years. Price indices for owner-occupied housing and for rental housing services are computed using 1985 national average housing characteristics. Housing inflation rates are measured using Laspeyres, Paasche, and Fisher indices. The article provides: (1) house price indices based on random samples of the entire housing stock rather than (nonrandom) samples of properties that sell one or more times, (2) indices that price a constant bundle of housing characteristics across the 44 metropolitan areas and over time, (3) indices for both house prices and housing inflation rates, (4) tenure-specific price indices for new housing, existing standard-quality housing, and substandard housing, and (5) an estimate of the gradual improvements in the nation's housing stock.

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