Departmental Papers (City and Regional Planning)

Document Type

Journal Article

Date of this Version

January 2002

Comments

Reproduced from Housing Policy Debate, Volume 13, Issue 2, 2002, pages 233-274.

NOTE: At the time of publication, the author, Dr. John Landis, was affiliated with the University of California. As of November 2007, he is a faculty member in the School of Design at the University of Pennsylvania.

Abstract

This article explores the effects of metropolitan industrial structure on housing market outcomes. Housing prices in new economy metropolitan areas are found to be higher, peakier, and more volatile than in old economy markets. Homeownership rates are found to be lower in new economy metropolitan areas, while crowding is higher. Although the distribution of housing values, costs, and rents was more equal in new economy markets, the cause would seem to be differences in area income levels, with poorer metropolitan statistical areas having greater inequalities.

Regression analysis is used to identify the contribution of traditional supply and demand factors, such as job growth, income, and residential construction, as well as new economy indicators, to housing market outcomes. Rather than being fundamentally different, new economy housing markets are found to be faster and more extreme versions of traditional housing markets.

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Date Posted: 26 November 2007