Book excerpt: We document that the transmission of monetary policy to real house prices and housing investment is heterogeneous across the US states during the period 1983-2008 and relate this heterogeneity to various state level observable factors. We find that an expansionary monetary policy raises real house prices and residential investment at the national level, the increase being much larger for some states but smaller for others. For states with higher percentage of older people, population density, income inequality the responses are above those of the national aggregates; for states with higher poverty rates and more educated people the responses are below those of the national aggregates. Higher property tax rates are also associated with lower responses of housing investment and house prices.