A private rental sector paradox: unpacking the effects of urban restructuring on housing market dynamics

AbstractWe propose a novel housing market model to explore the effectiveness of rent control. Our model reveals that the expectation formation and learning behavior of boundedly rational homebuyers, switching between extrapolative and regressive expectation rules subject to their past forecasting accuracy, may create endogenous housing market dynamics. We show that policymakers may use rent control to reduce the rent level, although such policies may have undesirable effects on the house price and the housing stock. However, we are also able to prove that well-designed rent control may help policymakers to stabilize housing market dynamics, even without creating housing market distortions.

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Israel's Housing Market Dynamics: A Tale of Two Sectors

Journal of Real Estate Literature ◽

10.1080/10835547.2000.12090091 ◽

2000 ◽

Vol 8 (2) ◽

pp. 129-152

Author(s):

Daniel Gat

Keyword(s):

Housing Market ◽

Market Dynamics ◽

Two Sectors

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Agglomeration effects and housing market dynamics

10.31235/osf.io/k9tcx ◽

2021 ◽

Author(s):

Christian Nygaard ◽

Sharon Parkinson ◽

margaret reynolds

Keyword(s):

Housing Market ◽

House Prices ◽

Market Dynamics ◽

Agglomeration Effects

This research quantifies productivity-related agglomeration benefits arising from the concentration of employment in Australia. While agglomeration provides a policy rationale for densifying cities and concentrating employment, it also leads to higher house prices, which reduce entry and ongoing affordability, greater pollution and other wellbeing detriments such as crime, crowding and noise.

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A hierarchical factor analysis of U.S. housing market dynamics

Econometrics Journal ◽

10.1111/j.1368-423x.2010.00319.x ◽

2011 ◽

Vol 14 (1) ◽

pp. C1-C24 ◽

Cited By ~ 48

Author(s):

Emanuel Moench ◽

Serena Ng

Keyword(s):

Factor Analysis ◽

Housing Market ◽

Market Dynamics ◽

Hierarchical Factor Analysis

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Adelaide's Heart Transplant, 1970–88: 2. The ‘Transfer’ of Value within the Housing Market

Environment and Planning A Economy and Space ◽

10.1068/a240323 ◽

1992 ◽

Vol 24 (3) ◽

pp. 323-339 ◽

Cited By ~ 15

Author(s):

B A Badcock

Keyword(s):

Built Environment ◽

Housing Market ◽

Urban Space ◽

Capital Flows ◽

Regression Models ◽

House Prices ◽

Wealth Accumulation ◽

Urban Restructuring ◽

Value Transfer ◽

Differential Movement

Regression analysis is used to examine the interaction of a number of processes that are thought to be responsible for the geographical transfer of value within the built environment. These are derived from an account by Smith of the restructuring of urban space. The ‘transfer’ of value is imputed from the differential movement of house prices between 1970 and 1988 for geographical submarkets within the Adelaide Metropolitan Area. Although the interpretation of the regression models is complicated, the evidence for a tilting of the ‘value transfer’ gradient from an inner-outer bias, to an outer—inner bias, can be statistically inferred from the processes of restructuring that have redirected capital flows within the built environment of Australian cities such as Adelaide, Sydney, and Melbourne in the course of the last two decades. Thus the uneven capital formation that characterises urban restructuring and is ultimately capitalised into real changes in house prices is a significant source of the added wealth that is accumulated from homeownership. By this means it is possible to bridge the two ‘islands’ of theory: Smith's account of urban restructuring and Saunders's concern with the sources of wealth accumulation within the housing market.

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