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Spatial Dynamics of the Housing Market: An Interurban Perspective

Author

Listed:
  • Colin Jones

    (School of the Built Environment, Heriot-Watt University, Riccarton, Edinburgh, EH14 4AS, UK, c.a.jone.r@hw.ac.uk)

  • Chris Leishman

    (School of the Built Environment, Heriot-Watt University, Riccarton, Edinburgh, EH14 4AS, UK, c.m.leishman@hw.ac.u)

Abstract

A major unproven hypothesis in housing economics is that regional ripple effects are caused by household migration between regions. This paper examines household migration and price ripples at the level of local housing markets driven partly by the fact that such migration linkages are likely to be more pronounced between local, rather than regional, housing markets. Following a review of regional housing market studies, several hypotheses linking the existence of lead-lag relationships and cointegration with the scale of migratory linkages between local housing market areas (LHMAs) are proposed. Using private housing transactions data for Strathclyde, a sub-region of Scotland, the paper identifies two clusters of LHMAs that differ in terms of their migratory linkages with Glasgow, the hypothesised leading housing market of the sub-region. Tests for lead-lag relationships and cointegration confirm the link between migration and house price changes.

Suggested Citation

  • Colin Jones & Chris Leishman, 2006. "Spatial Dynamics of the Housing Market: An Interurban Perspective," Urban Studies, Urban Studies Journal Limited, vol. 43(7), pages 1041-1059, June.
    • Handle: RePEc:sae:urbstu:v:43:y:2006:i:7:p:1041-1059
    DOI: 10.1080/00420980600711316
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    References listed on IDEAS

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    2. Holmes, Mark J. & Otero, Jesús & Panagiotidis, Theodore, 2019. "Property heterogeneity and convergence club formation among local house prices," Journal of Housing Economics, Elsevier, vol. 43(C), pages 1-13.
    3. Shu-hen Chiang, 2014. "Housing Markets in China and Policy Implications: Comovement or Ripple Effect," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 22(6), pages 103-120, November.
    4. Yang, Jian & Yu, Ziliang & Deng, Yongheng, 2018. "Housing price spillovers in China: A high-dimensional generalized VAR approach," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 98-114.
    5. Bruce Morley & Dennis Thomas, 2018. "Covariance Risk and the Ripple Effect in the UK Regional Housing Market," Review of Economics & Finance, Better Advances Press, Canada, vol. 13, pages 1-13, August.
    6. David Gray, 2015. "Hidden Properties of Irish House Price Vintages," Housing Studies, Taylor & Francis Journals, vol. 30(8), pages 1317-1353, November.
    7. Wonseok Seo & LeeYoung Kim, 2020. "Investigating the Ripple Effect through the Relationship between Housing Markets and Residential Migration in Seoul, South Korea," Sustainability, MDPI, vol. 12(3), pages 1-22, February.
    8. Patrick J. Wilson & Ralf Zurbruegg, 2008. "Big City Difference? Another Look at Factors Driving House Prices," Journal of Property Research, Taylor & Francis Journals, vol. 25(2), pages 157-177, November.

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