Financial and Total Wealth Inequality with Declining Interest Rates
Insights from Dan Greenwald’s Research at the UZH Finance Seminar
The Department of Finance at the University of Zurich (UZH) regularly hosts leading scholars as part of its Finance Seminar Series.
In this context, we were pleased to welcome Dan Greenwald, Assistant Professor of Finance at the NYU Stern School of Business, to our department on 11 December 2025. Prof. Greenwald's research focuses on housing and mortgage markets, the behavior of debt, and how these forces shape economic outcomes.
Title of his talk: Financial and Total Wealth Inequality with Declining Interest Rates
Our colleageus from Center for Urban & Real Estate Management (CUREM) interviewed Prof. Greenwald during his stay where he explained how changes in debt markets and decades of falling interest rates have reshaped both the housing market and financial wealth inequality.
Key findings
Prof. Greenwald explained that loosening payment‑to‑income (DTI) limits (which restrict how much of a borrower’s income can be used for mortgage payments) played a major role in the 2000s housing boom. Because incomes rose much more slowly than home prices, easing these limits allowed households to take on significantly larger mortgages, driving a substantial share of the increase in house prices relative to rents. He argues that income‑based limits, rather than loan‑to‑value rules, are the most effective tools for preventing overheated housing markets.
The interview also highlighted his broader research on inequality. Greenwald finds that declining interest rates and redistribution toward shareholders have been major forces behind rising stock values and widening financial wealth gaps since the 1980s.
He also emphasized that he was interested in real estate markets because they are so important for a typical household. Understanding this market is key to understand how most households manage their finances, make spending decisions, and respond to economic policies. Looking ahead, he highlighted three developments likely to influence the market: many homeowners remaining “locked in” by very low mortgage rates, younger buyers continuing to struggle with high home prices, and the growing presence of institutional investors in single‑family rental housing.
More information:
- Read the full interview here: https://www.curem.uzh.ch/de/forschung/Finance-Seminar.html
- The Center for Urban & Real Estate Management (CUREM) is part of the Executive Education program of the Faculty of Business, Economics and Informatics at the University of Zurich. It offers practice-oriented continuing education courses, sound research, and valuable networking opportunities in the real estate industry. https://www.curem.uzh.ch/de.html
- The UZH Department of Finance and the Center for Urban & Real Estate Management (CUREM) work closely together in the field of Real Estate Finance Research and Executive Education.
- UZH Department of Finance Research Seminars: https://www.df.uzh.ch/en/research/seminars/financeseminar.html