First, house prices have a bigger wealth effect on consumer spending, largely because more people own their homes than own shares.

ECONOMIST: House of cards | The

House prices have a far bigger wealth effect on consumer spending than share prices do.

ECONOMIST: World economy

Willem Buiter of the London School of Economics has argued in the past that when house prices fluctuate, there are both winners and losers, but no net wealth effect.

ECONOMIST: House prices and the wealth effect

Even though house prices in France, Italy and Spain have risen by more than in the United States, the wealth effect on consumer spending has been smaller (see article).

ECONOMIST: The European Central Bank