Fig. 6: Heterogeneous effects of investment activities on price dispersion during Boom-Bust periods.

Figure employs a series of year dummy variables interacting with both new investor entry turnover and investment property purchase turnover. a, b The impact of investor activities on price dispersion. a Measures investor activity using “new investor entry turnover,” defined as the number of new investors—those purchasing their first investment property—normalized by total housing stock. b Uses “investment property purchase turnover,” the number of investment properties acquired by investors in a given period, also normalized by housing stock. Both panels reveal consistent results supporting the presence of asymmetric effects. This methodology enables an intuitive observation of how the effects of investment activities on housing price dispersion evolve over time. The analysis reveals the asymmetric impacts of these activities under varying market conditions, illustrating how fluctuations in investment behavior correspond with shifts in price dispersion throughout boom and bust cycles. The shaded blue areas indicate two major downturns (the 1998–2003 bust and the 2008 financial crisis), where a more pronounced reduction in price dispersion underscores these asymmetric effects.