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Social Behaviour as a Basis for Modelling the Urban Housing Market: A Review

Author

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  • David Meen

    (Centre for Spatial and Real Estate Economics, Department of Economics, School of Business, The University of Reading, PO Box 219, Whiteknights, Reading RG6 6AW, UK,)

  • Geoffrey Meen

    (Centre for Spatial and Real Estate Economics, Department of Economics, School of Business, The University of Reading, PO Box 219, Whiteknights, Reading RG6 6AW, UK, g.p.meen@reading.ac.uk)

Abstract

This paper considers how empirical models of urban housing markets might be constructed as a basis for policy analysis. It is suggested that this is fundamentally more difficult than national or regional models, because of particular characteristics of urban markets-notably, the importance of social interactions, non-linearity and segregation. However, recent advances in the modelling of social interactions point to a possible way forward. The paper begins by reviewing some aspects of this literature and shows how the models generate non-linearities consistent with recent work on thresholds in local housing markets. Simple cellular automata are also used to demonstrate this point and how segregation may arise. A review follows of work on discrete choice models, which include social interactions within their structure. Bringing all the tools together, it is suggested that there is now the potential to construct urban housing models, although a great deal of theoretical and empirical work remains to be done.

Suggested Citation

  • David Meen & Geoffrey Meen, 2003. "Social Behaviour as a Basis for Modelling the Urban Housing Market: A Review," Urban Studies, Urban Studies Journal Limited, vol. 40(5-6), pages 917-935, May.
  • Handle: RePEc:sae:urbstu:v:40:y:2003:i:5-6:p:917-935
    DOI: 10.1080/0042098032000074245
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    References listed on IDEAS

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    Cited by:

    1. Erlingsson, Einar Jon & Teglio, Andrea & Cincotti, Silvano & Stefansson, Hlynur & Sturlusson, Jon Thor & Raberto, Marco, 2014. "Housing market bubbles and business cycles in an agent-based credit economy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-42.
    2. Diego Salzman, 2013. "Behavioural Real Estate," ERES eres2013_334, European Real Estate Society (ERES).
    3. Elif Alkay, 2008. "Housing Submarkets in Istanbul," International Real Estate Review, Global Social Science Institute, vol. 11(1), pages 113-127.
    4. Torkel Bjørnskau, 2005. "Road Traffic Change: A Catalyst for Segregation?," Urban Studies, Urban Studies Journal Limited, vol. 42(1), pages 69-89, January.
    5. Peter J. B. Brown & Stephen Hincks, 2008. "A Framework for Housing Market Area Delineation: Principles and Application," Urban Studies, Urban Studies Journal Limited, vol. 45(11), pages 2225-2247, October.
    6. Bhattacharjee, Arnab & Jensen-Butler, Chris, 2013. "Estimation of the spatial weights matrix under structural constraints," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 617-634.
    7. George Galster & Jackie Cutsinger & Up Lim, 2007. "Are Neighbourhoods Self-stabilising? Exploring Endogenous Dynamics," Urban Studies, Urban Studies Journal Limited, vol. 44(1), pages 167-185, January.
    8. Meen, Geoffrey & Andrew, Mark, 2004. "On the use of policy to reduce housing market segmentation," Regional Science and Urban Economics, Elsevier, vol. 34(6), pages 727-751, November.
    9. Tom Kauko, 2013. "A Demonstration of Sustainability Arguments Using House Price Data," ERES eres2013_146, European Real Estate Society (ERES).
    10. Jinke Li & Geoffrey Meen, 2016. "Agent Based Models, Housing Fluctuations and the Role of Heterogeneous Expectations," Economics Discussion Papers em-dp2016-09, Department of Economics, University of Reading.
    11. Gwilym Pryce, 2013. "Housing Submarkets and the Lattice of Substitution," Urban Studies, Urban Studies Journal Limited, vol. 50(13), pages 2682-2699, October.
    12. Geoffrey Meen, 2016. "Spatial housing economics: A survey," Urban Studies, Urban Studies Journal Limited, vol. 53(10), pages 1987-2003, August.
    13. Diego A. Salzman & Remco C.J. Zwinkels, 2013. "Behavioural Real Estate," Tinbergen Institute Discussion Papers 13-088/IV/DSF58, Tinbergen Institute.
    14. Vicente Royuela & Miguel Vargas, 2010. "Residential Segregation: A Literature Review," Working Papers 7, Facultad de Economía y Empresa, Universidad Diego Portales.
    15. Carlos González & Carlos Marmolejo, 2017. "Identifying Residential Sub-Markets Using Intraurban Migrations: The Case Of Study Of Barcelona’S Neighborhoods," LARES lares_2017_paper_96, Latin American Real Estate Society (LARES).
    16. Jae Hong Kim & Francesca Pagliara & John Preston, 2005. "The Intention to Move and Residential Location Choice Behaviour," Urban Studies, Urban Studies Journal Limited, vol. 42(9), pages 1621-1636, August.
    17. John Meligrana & Andrejs Skaburskis, 2005. "Extent, Location and Profiles of Continuing Gentrification in Canadian Metropolitan Areas, 1981-2001," Urban Studies, Urban Studies Journal Limited, vol. 42(9), pages 1569-1592, August.
    18. Kenneth Gibb & Liv Osland & Gwilym Pryce, 2014. "Describing Inequalities in Access to Employment and the Associated Geography of Wellbeing," Urban Studies, Urban Studies Journal Limited, vol. 51(3), pages 596-613, February.
    19. Susan J. Smith & Moira Munro & Hazel Christie, 2006. "Performing (Housing) Markets," Urban Studies, Urban Studies Journal Limited, vol. 43(1), pages 81-98, January.
    20. Geoffrey Meen, 2012. "The Adjustment of Housing Markets to Migration Change: Lessons from Modern History," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(5), pages 500-522, November.
    21. Christian Nygaard & Geoffrey Meen, 2013. "The Distribution of London Residential Property Prices and the Role of Spatial Lock-in," Urban Studies, Urban Studies Journal Limited, vol. 50(12), pages 2535-2552, September.
    22. Tom Kauko, 2009. "Classification of Residential Areas in the Three Largest Dutch Cities Using Multidimensional Data," Urban Studies, Urban Studies Journal Limited, vol. 46(8), pages 1639-1663, July.

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