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Is there an S in urban housing supply? or What on earth happened in Detroit?

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  • Goodman, Allen C.

Abstract

This article examines the substantial housing stock declines between 2000 and 2010 in many major US central cities. It updates an analysis first formulated in the 1970s, of an S-shaped housing supply curve, to explain decreases in absolute housing stocks. Explanatory variables include Metropolitan Statistical Area standardized rents, center city prior occupancy rates, regional unemployment rates, and a set of regional and state dummy variables. The analysis provides strong evidence of a lower tail of the S, and more tentative evidence of an upper tail. Market fundamentals explain a considerable portion of the large housing stock losses, but in several cities loss of dwelling units and housing abandonment were worse than could be explained by the fundamentals.

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  • Goodman, Allen C., 2013. "Is there an S in urban housing supply? or What on earth happened in Detroit?," Journal of Housing Economics, Elsevier, vol. 22(3), pages 179-191.
    • Handle: RePEc:eee:jhouse:v:22:y:2013:i:3:p:179-191
    DOI: 10.1016/j.jhe.2013.05.001
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    References listed on IDEAS

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    1. Goodman, Allen C., 2005. "Central cities and housing supply: Growth and decline in US cities," Journal of Housing Economics, Elsevier, vol. 14(4), pages 315-335, December.
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    6. Glaeser, Edward L & Gyourko, Joseph & Saks, Raven, 2005. "Why Is Manhattan So Expensive? Regulation and the Rise in Housing Prices," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 331-369, October.
    7. Brueckner, Jan K., 1987. "The structure of urban equilibria: A unified treatment of the muth-mills model," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 20, pages 821-845, Elsevier.
    8. Gregory K. Ingram & John F. Kain, 1973. "A Simple Model of Housing Production and the Abandonment Problem," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 1(1), pages 79-106, March.
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    8. Brown, Molly & Klebek, Lauren & Chodzen, Gia & Scartozzi, Samantha & Cummings, Camilla & Raskind, Alejandro, 2018. "Housing status among single adults following Homelessness Prevention and Rapid Re-housing Program participation in Indianapolis," Evaluation and Program Planning, Elsevier, vol. 69(C), pages 92-98.

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