Godinho, FredericoObermeier, Benedict2026-04-132026-04-132026-01-152026-01-15http://hdl.handle.net/10362/202194This thesis studies how regional housing market sentiment influences households’ expectations about future house-price growth. Using monthly behavioural indicators from Zillow to construct a Regional Sentiment Index and matching it to individual expectations from the New York Fed’s Survey of Consumer Expectations, the analysis links local market conditions to subjective beliefs across states. A national sentiment measure from Fannie Mae serves as a benchmark. Results show that regional sentiment strongly predicts expected price growth, while national sentiment contributes little. Further analysis reveals marked differences across states: sentiment plays a much stronger role in places with more volatile housing markets, while expectations in more stable states react only modestly.engMicroeconomicsBehavioural economicsHousehold expectationsHouse-hold sentimentmaster thesis204237289