Economics of housing market segmentation

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Over the years, economists have debated the extent to which the assumption of a single housing market in a city or region is reasonable. Some have argued that in estimating housing prices, the housing market should be stratified into a series of separate submarkets, divided by structure type, neighbourhood, and potentially race and ethnicity. Still, even to the extent that these submarkets are distinct, they are clearly related. Households exhibit some flexibility in their choices, and prices in one sector clearly affect demand in other sectors to some degree. The debate about segmentation is really about degree - about how large the cross-price elasticity is between different types of housing. © 2012

Original languageEnglish (US)
Title of host publicationInternational Encyclopedia of Housing and Home
PublisherElsevier
Pages51-54
Number of pages4
ISBN (Print)9780080471716
DOIs
StatePublished - 2012

Keywords

  • Demand elasticity
  • Hedonic housing prices
  • Race
  • Racial discrimination
  • Submarket
  • Substitute
  • Supply elasticity

ASJC Scopus subject areas

  • Social Sciences(all)

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