Scholarship

Research

My research examines housing markets, real estate finance, urban policy, and the choices households make within local markets.

Publications

Coresidence: How Parental Characteristics Matter

with Arthur Acolin (University of Washington) and Susan Wachter (University of Pennsylvania)

Real Estate Economics, 2026

APA citation

Acolin, A., Lin, D., & Wachter, S. M. (2026). Coresidence: How parental characteristics matter. Real Estate Economics, 54(3), 701–727. https://doi.org/10.1111/1540-6229.70028

Abstract

Coresidence in the parental home is known to depend on young adult characteristics and market conditions, but there is more limited knowledge on whether or how parental characteristics matter. We model the coresidence outcome as a multigenerational joint optimization decision and use Panel Study of Income Dynamics data to examine the association of parental housing and wealth with young adult coresidence. The findings show that parental financial capacity is negatively associated with the likelihood of coresidence. Housing capacity, captured by the size and ownership status of the parental home, is positively associated with the likelihood of coresidence. We observe a stronger association of parental wealth and housing capacity with coresidence in less affordable markets and over time.

Presentations
Workshop on Changing Demographics and Housing Demand, Philadelphia, PA, 2024 · Housing & Demographic Dynamics Workshop, Singapore, 2025 · AREUEA International Meeting, Barcelona, Spain, 2025

From Vacancy to Verdancy? The Impact of Land Options on the Timing of Vacant Lot Investment

Real Estate Economics, 2024

APA citation

Lin, D. (2024). From vacancy to verdancy? The impact of land options on the timing of vacant lot investment. Real Estate Economics, 52(5), 1263–1307. https://doi.org/10.1111/1540-6229.12487

Abstract

Land vacancy is a persistent phenomenon leading to various socioeconomic issues in postindustrial cities. We examine the relationship between the timing of vacant lot investment and land options and compare two investment options using a quasi-experimental design: housing investment that develops vacant lots into housing, and greening investment that converts vacant lots into gardens and reserves redevelopment options. By compiling a unique lot-level time-to-event dataset based on a large-scale vacant lot greening program in Philadelphia, we address the questions of whether and how introducing the option of greening investment to vacant lots can expedite initial investment and reduce vacancy. With the greening option, initial investment on vacant lots becomes less irreversible, thus reducing time in vacancy by 50% and elevating the hazard rate of investment by 80%. We test for the presence of the real options channel, identifying a decelerating (accelerating) effect of price uncertainty (price growth rate) on the timing of housing investment and insignificant effects of the factors on the timing of greening investment. Our findings suggest that vacant lot greening as an anti-blight strategy is more effective to expedite investment in neighborhoods with elevated uncertainty, subdued growth rate, moderately lower income, and heightened vacancy.

Presentations
ARES Annual Meeting, Orlando, FL, 2024 · Lincoln Institute of Land Policy, Cambridge, MA, 2024 · AREUEA National Meeting, Washington, D.C., 2024

Why Do Young Adults Coreside with Their Parents?

with Arthur Acolin (University of Washington) and Susan Wachter (University of Pennsylvania)

Real Estate Economics, 2024

APA citation

Acolin, A., Lin, D., & Wachter, S. M. (2024). Why do young adults coreside with their parents? Real Estate Economics, 52(1), 7–44. https://doi.org/10.1111/1540-6229.12467

Abstract

Nearly one in every two adults aged 18–29 currently lives with their parents, compared to slightly more than one in four in 1960. The literature focuses on changing labor market conditions and marriage–childbearing delays to account for this shift. Using a Blinder–Oaxaca procedure, we identify a role for housing affordability, measured by market-level median housing rent or price to median household income ratios, as an additional factor in the increase in coresidency since but not before 2000. We endogenize the marriage–childbearing decision with a Heckman selection model and attribute up to a quarter of the observed 9-percentage-point increase in the coresidence share between 2000 and 2021 to a decrease in housing affordability. We find a nonlinear relationship between affordability and coresidence with the relationship strongest in the least affordable metros where affordability constraints might be more binding. Overall, these results show changes in market-level housing affordability are associated with the increase in young adult coresidence over the first two decades of the 21st century.

Presentations
FHFA ECON Summit on Housing Market Challenges, Washington, D.C., 2023 · ASSA–AREUEA Annual Meeting, San Antonio, TX, 2024

The Price Effects of Greening Vacant Lots: How Neighborhood Attributes Matter

with Shane Jensen (University of Pennsylvania) and Susan Wachter (University of Pennsylvania)

Real Estate Economics, 2023

APA citation

Lin, D., Jensen, S. T., & Wachter, S. M. (2023). The price effects of greening vacant lots: How neighborhood attributes matter. Real Estate Economics, 51(3), 573–610. https://doi.org/10.1111/1540-6229.12401

Abstract

We identify the effects of greening vacant lots on nearby housing prices and show how neighborhood attributes matter to these outcomes. Using data from a longstanding program in Philadelphia, we find that prices for houses within 1,000 feet of a greened vacant lot rise by about 4%, consistent with the literature, with the effect size increasing over time. Using the extensive data available in Philadelphia, we show how these effects vary by the attributes of the neighborhood in which they occur, with larger effects in areas with a high share of vacant land and higher-than-average median household incomes, with peak responses estimated at 19% and 15%, respectively. We demonstrate the importance of sample selection bias adjustment for identification of the effect of vacant lot greening.

Presentations
CSUF Finance Brownbag Seminar, Fullerton, CA, 2022 · ASSA–AREUEA Annual Meeting, New Orleans, LA, 2023

Mortgage Risk Premiums during the Housing Bubble

with Adam Levitin (Georgetown University) and Susan Wachter (University of Pennsylvania)

Journal of Real Estate Finance and Economics, 2020

APA citation

Levitin, A. J., Lin, D., & Wachter, S. M. (2020). Mortgage risk premiums during the housing bubble. Journal of Real Estate Finance and Economics, 60(4), 421–468. https://doi.org/10.1007/s11146-018-9682-z

Abstract

How did pricing for mortgage credit risk change during the years prior to the 2008 financial crisis? Using a database from a major American bank that served as trustee for private-label mortgage-backed securitized (PLS) loans, this paper identifies a decline in credit spreads on mortgages conditioned on loan and borrower characteristics. We show that observable risk factors, FICO score and loan-to-value ratio, had less of an impact on mortgage pricing over time. As the volume of PLS mortgages expanded and lending terms eased, risk premiums failed to price the increase in risk.

Presentations
AREUEA National Meeting, Washington, D.C., 2018

Endowments and Minority Homeownership

with Arthur Acolin (University of Washington) and Susan Wachter (University of Pennsylvania)

Cityscape, 2019

APA citation

Acolin, A., Lin, D., & Wachter, S. M. (2019). Endowments and minority homeownership. Cityscape, 21(1), 5–62.

Abstract

Fifty years after the adoption of the 1968 Fair Housing Act that prohibits discrimination in the housing market, homeownership rates have not increased for Black or Hispanic households. The current homeownership rate for Black households is 42 percent, identical to the 1970 census reported level, and 48 percent for Hispanic households, lower than that in 1970. Using data from the 1989, 2005, and 2013 American Housing Surveys, we identify the extent to which group differences in household endowments account for persistently low minority homeownership levels.

Presentations
Urban Institute Data Talk, Washington, D.C., 2019 · ASSA–AREUEA Annual Meeting, San Diego, CA, 2020

Working Papers

Working paper

Land Interventions and Urban Vitality: Evidence from Neighborhood Traffic

with Shane Jensen (University of Pennsylvania) and Susan Wachter (University of Pennsylvania)

2026

APA citation

Lin, D., Jensen, S. T., & Wachter, S. M. (2026). Land interventions and urban vitality: Evidence from neighborhood traffic [Working paper].

Abstract

How do vacant land interventions reshape neighborhood traffic during and after a severe economic shock? Using the COVID-19 pandemic as an exogenous shock to aggregate demand, we compare mobility trajectories around formerly vacant lots that were greened or redeveloped through new construction, relative to lots that remained vacant. Our matched difference-indifferences estimates are consistent with a spatial coordination game characterized by multiple equilibria. We show that the capital required to anchor neighborhood commercial vitality depends on the strength of local network externalities. For agglomeration-sensitive amenities, greening stabilizes nearby visits relative to persistent vacancy, but the rebound in visits is stronger around new construction, suggesting that durable real estate investment provides a stronger anchor for recovery. For other amenities, both interventions mitigate the decline in local visits. These results suggest that vacant land policy should match the intensity of intervention to the structure of local demand: greening offers scalable blight remediation and neighborhood stabilization, while new construction is needed where recovery depends more strongly on agglomeration-sensitive visit activity.

Working paper

Urban Demographic Decline and Housing Affordability

with Arthur Acolin (University of Washington), Kwan Ok Lee (National University of Singapore), and Susan Wachter (University of Pennsylvania)

2026

APA citation

Acolin, A., Lee, K.O., Lin, D., & Wachter, S. M. (2026). Urban Demographic Decline and Housing Affordability [Working paper].

Abstract

Declining housing affordability may shape family formation by slowing young adults’ transition from the parental home to independent household formation. This paper examines parental coresidence as a household-level margin linking local housing conditions, intergenerational resources, and later marriage and childbearing. Using PSID data, we follow young adults aged 25-34 in 2013 through 2023 and compare those living with parents at baseline to similar young adults living independently. We use baseline individual, parental, and market characteristics to distinguish raw selection into coresidence from the adjusted relationship between coresidence and subsequent family formation. Baseline coresidence remains associated with lower later marriage and childbearing. However, this negative association is significantly weaker in less affordable housing markets. The findings suggest that coresidence is an important marker of young adults’ family-formation trajectories and that its relationship with family outcomes depends on whether living with parents reflects delayed independence in general, or is a housing-cost response.

Work in Progress

Work in progress

Beyond Proximity in the 15-Minute City: A Behavioral Framework for Local Access, Urban Centers, and Spatial Equity

with Betty Xiao Wang (University of Hong Kong) and Kwan Ok Lee (National University of Singapore)

2026

Work in progress

Rental Market Conditions and Housing Choice: Evidence from Near-Campus Housing Markets

with HanNa Lim (California State University, Fullerton)

2026

Work in progress

Risk Recast in Housing Markets: Evidence from an Appraisal Reform

2026

Work in progress

Young Adult Coresidence and Inter Vivos Transfers

with Arthur Acolin (University of Washington), Kwan Ok Lee (National University of Singapore), and Susan Wachter (University of Pennsylvania)

2026

Other Research

Dissertation

Housing Search and Rental Market Intermediation

2020

APA citation

Lin, D. (2020). Housing search and rental market intermediation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3714128

Abstract

Rental brokers as the matchmakers between tenants and landlords contribute 80% of the rental listings in certain markets, but how they smooth the search friction and transmit policy impacts is not well understood. This paper is the first to use a listing-agent matched data set from an online platform to show the heterogeneous impact of the listing capacity of a broker, i.e. the agent size, on the rental market outcomes. I document that brokers with greater listing capacity are related to lower rents and shorter listing duration. The dispersion cannot be fully explained by the amenity difference of rentals and points to a sizable agent impact that a broker with greater capacity lists a rental at a lower rent. I develop a search model that features a search-and-matching process in which the capacity constraints of brokers interact with the tenant coordination friction. The capacity constraints differentiate brokers’ ability to coordinate tenant search. The smaller rent premium for listings by larger brokers reflects the capacity benefit that larger brokers coordinate tenant search better by reducing the likelihood of facing a binding capacity constraint. An endogenous agent distribution of the listing capacity, which summarizes how frictional the rental market is, arises in the model. I evaluate the counterfactual effects of two rental market policies. First, I show that expanding the brokerage sector will not benefit tenants in the search process. As the mean agent size decreases, the rental market becomes more frictional. Second, I evaluate the impact of shifting the commission liability from tenants to landlords, which is central to the New York rental market reform. As the equilibrium rent increase cannot fully compensate the commission cost on landlords, the policy decreases rental supply and makes searching tenants worse off. I characterize the optimal allocation of the broker’s fee and show that brokers with greater listing capacity should list more rentals with the fee paid by landlords

Presentations
ARES Annual Meeting, Virtual, 2021 · North American Summer Meeting of the Econometric Society, Virtual, 2021
Policy report

Vacant Lot Greening as a Long-Term Investment in Legacy Cities? Evidence from the LandCare Program in Philadelphia

Lincoln Institute of Land Policy, 2026

APA citation

Lin, D. (2026). Vacant lot greening as a long-term investment in legacy cities? Evidence from the LandCare Program in Philadelphia. Lincoln Institute of Land Policy.

Abstract

Philadelphia’s LandCare Program, initiated in the mid‑1990s by the Pennsylvania Horticultural Society, presents a scalable and cost‑effective approach to addressing urban vacancy and blight through the transformation of neglected lots into maintained green space. This paper reviews the historical context of land vacancy in Philadelphia and charts the development of LandCare from localized pilot efforts to a citywide program integrated into the city’s planning goals. It examines the procedures of vacant lot remediation, outlines the program’s operational and maintenance costs, and presents before-and-after visual evidence of neighborhood change. Two empirical analyses evaluate the program’s economic impacts: one estimates the amenity value capitalized into nearby property prices, and the other explores how greening can reduce time in vacancy by facilitating vacant lot investment. The paper concludes with policy recommendations focusing on funding sustainability, inter-agency coordination, and the removal of legal and administrative barriers of land reuse. The Philadelphia experience offers valuable insights for other post-industrial legacy cities aiming to turn vacant land into a catalyst for neighborhood revitalization and long-term resilience.

Unpublished manuscript

REIT Capital Structure Choices: When Does Preparation Matter?

with Andrey Pavlov (Simon Fraser University), Eva Steiner (Pennsylvania State University), and Susan Wachter (University of Pennsylvania)

2021

APA citation

Lin, D., Pavlov, A. D., Steiner, E., & Wachter, S. M. (2021). REIT capital structure choices: When does preparation matter? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3830948

Abstract

Pavlov, Steiner and Wachter (2018) find that REITs which prepared by reducing leverage and extending maturity prior to the 2007-2009 financial crisis outperformed their peers during the crisis, a result that holds in the presence of leverage and maturity level controls. While the authors document this finding, they are unable to identify its cause. The recent COVID-related market downturn and subsequent recovery offers a unique opportunity to extend this work and to test for why leverage adjustments before a crisis matter. Specifically, we document that the capital structure adjustments that have strong predictive power for the 2007-2009 financial crisis returns have no impact on the REIT returns during the COVID pandemic of 2020. The relevant difference between the two events is that the 2007-2009 financial crisis was largely predictable, especially for members of the real estate industry, while the COVID pandemic was truly unpredictable. Therefore, preparation prior to the 2007-2009 crisis was seen as a signal for managerial competence, but had no information value during the recent pandemic. In other words, managers are expected to prepare for changes in the external environment if and only if those changes are predictable.

Presentations
ASSA–AREUEA Annual Meeting, Virtual, 2022
Unpublished manuscript

Land Use Regulation, Regulatory Spillover and Housing Prices

with Susan Wachter (University of Pennsylvania)

2020

APA citation

Lin, D., & Wachter, S. M. (2020). Land use regulation, regulatory spillover and housing prices. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3363947

Abstract

We estimate the effect of city land use regulation on housing prices in the presence of regulatory spillover. The total effect of regulation is decomposed into a direct effect in which regulation lowers housing productivity and an indirect effect in which household location choice mitigates the price effects of regulatory restrictions. Using housing sales data from California, we structurally estimate a closed-form housing price equation based on a housing model with spatial arbitrage. We find that the total price effect of a one standard deviation increase in city restrictiveness is 9.3% on average, ranging from 4.1% to 14.4% across cities. The spillover effect is economically significant, with the size of the indirect effect equal to 21% of the direct effect for an average city, ranging from 0 to 47%. We point to the importance of identifying direct and indirect effects by controlling for regulation in surrounding locations. For jurisdictions with the power to impose regulation on a larger number of locations, regulation has a stronger price impact due to limits on regulatory spillover.

Presentations
Annual PhD Conference on Real Estate and Housing, Ohio State University, Columbus, OH, 2019 · AREUEA National Meeting, Washington, D.C., 2019 · ESCP–TAU–UCLA Conference on Low-Income Housing Supply and Housing Affordability, Madrid, Spain, 2019 · Urban Economics Association Meeting, Philadelphia, PA, 2019 · AEA–ASSA Annual Meeting, San Diego, CA, 2020 · ARES Annual Meeting, Fort Myers, FL, 2020 (cancelled due to COVID-19)
Unpublished manuscript

Housing Boom, Mortgage Default and Agency Friction

2018

APA citation

Lin, D. (2018). Housing boom, mortgage default and agency friction. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3367554

Abstract

The housing prices and the mortgage debt witnessed faster growth than GDP in the run-up of the Great Recession. I document a mortgage market puzzle during the boom period: (1) the mortgage risk measured by the ex post delinquency increased, but (2) the mortgage spread decreased. The default premium alone cannot explain the decreasing mortgage spread in the boom episode. I develop a dynamic general equilibrium model of the housing and the mortgage markets with borrowers, depositors, and intermediaries to explain the empirical fact. The model features the tightness of the lending condition and the mortgage risk as the aggregate shocks, which generate the time-varying liquidity and default premiums in the mortgage spread. I quantify the contribution of the aggregate risks to the boom-bust dynamics before and after the Great Recession. A plausible size of the income shock alone is insufficient to generate the observed movement in the mortgage spread. The model shows that the lending relaxation that eases the leverage constraint of an intermediary leads to the increasing mortgage credit and the decreasing mortgage spread in the boom period. The lending condition shock generates pro-cyclical leverage of intermediaries that amplifies the aggregate shocks in the boom-bust dynamics.

Presentations
Midwest Macroeconomics Meetings, Nashville, TN, 2018 · 13th Annual Economics Graduate Students Conference, Washington University in St. Louis, St. Louis, MO, 2018 · Penn Macro Lunch, University of Pennsylvania, Philadelphia, PA, 2018 · ASSA–AREUEA Doctoral Session, Atlanta, GA, 2019
Pre-doctoral research

A Literature Review of Career Concerns: Theories and Empirics

2015

APA citation

Lin, D. (2015). A literature review of career concerns: Theories and empirics [Unpublished manuscript].

Abstract

The paper conducts a literature review on the topic of career concerns covering both theory and empirics. Career concerns describe a class of dynamic games with asymmetric information, endogenous feedback and reputational concerns. As a mixture of adverse selection and moral hazard, the principal-agent models of career concerns are grouped into three categories based on different interpretation of the agent’s type: productivity, taste and preferences, and expertise. Career concerns possess explanatory power in many aspects of real life, from labor markets to social media, and from financial industries to political institutions.

Presentations
UC Santa Barbara Labor Economics Workshop, Santa Barbara, CA, 2015