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Moving and Improving: Strategies for Attaining Housing Equilibrium

Author

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  • Amanda Littlewood

    (Centre for Housing Research and Urban Studies, University of Glasgow, 25 Bute Gardens, Glasgow, G12 8RS, UK. a.littlewood@socsci.gla.ac.uk)

  • Moira Munro

    (Planning & Housing, Edinburgh College of Art, Heriot-Watt University, 79 Grassmarket, Edinburgh, EH1 2HJ, UK. m.munro@eca.ac.uk)

Abstract

The concept of equilibrium consumption is central to much housing market analysis, yet analysts must contend with the likelihood that many housing consumers are not at an exact equilibrium level of consumption because of the inhibiting effects of the high cost of moving. This paper explores the theoretical and empirical importance of improvement activity and its relationship with residential mobility in attaining equilibrium housing consumption. The paper argues that previous frameworks have over-simplified the options available to households, by assuming that improving and moving are discrete, alternative ways of attaining an equilibrium level of consumption. Instead, the evidence presented here suggests that recent movers will frequently undertake a programme of improvement activity so that the newly acquired dwelling will, over a period of months or years, more closely match the household's requirements. This suggests that the price and quality 'bundle' chosen at the time of purchase may not, in fact, be an accurate measure of the households current or future equilibrium housing consumption.

Suggested Citation

  • Amanda Littlewood & Moira Munro, 1997. "Moving and Improving: Strategies for Attaining Housing Equilibrium," Urban Studies, Urban Studies Journal Limited, vol. 34(11), pages 1771-1787, November.
  • Handle: RePEc:sae:urbstu:v:34:y:1997:i:11:p:1771-1787
    DOI: 10.1080/0042098975240
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    References listed on IDEAS

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    Cited by:

    1. Peter E. Earl & Ti-Ching Peng, 2011. "Home Improvements," Chapters, in: Samuel Cameron (ed.), Handbook on the Economics of Leisure, chapter 10, Edward Elgar Publishing.

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