IDEAS home Printed from https://ideas.repec.org/a/taf/houspd/v25y2015i3p549-573.html
   My bibliography  Save this article

The Impact of Housing Submarkets and Urban Form on the Foreclosure Crisis in U.S. Urban Counties

Author

Listed:
  • Indro Ray
  • Subhrajit Guhathakurta

Abstract

In this article, the authors introduce a novel way to define and measure housing submarkets in relation to foreclosures. Instead of the traditional methods of identifying submarkets a priori, this study uses an approach that empirically delineates housing submarkets based on spatial contiguity and housing attributes. The spatial clustering algorithm developed for this study identified submarkets in each of the urban counties. A spatial regression model was then used to assess the impact of submarket structure on foreclosure rates. In addition, the study also incorporates a measure of sprawl in its analysis. It was found that sprawling counties are not more likely to have higher rates of foreclosures compared with average rates. However, the counties with smaller and more fragmented housing submarkets are likely to have lower rates of foreclosures. The results suggest that urban form is less consequential than housing market structure in affecting U.S. housing market dynamics.

Suggested Citation

  • Indro Ray & Subhrajit Guhathakurta, 2015. "The Impact of Housing Submarkets and Urban Form on the Foreclosure Crisis in U.S. Urban Counties," Housing Policy Debate, Taylor & Francis Journals, vol. 25(3), pages 549-573, July.
    • Handle: RePEc:taf:houspd:v:25:y:2015:i:3:p:549-573
    DOI: 10.1080/10511482.2014.971043
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10511482.2014.971043
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10511482.2014.971043?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rothenberg, Jerome & Galster, George C. & Butler, Richard V. & Pitkin, John R., 1991. "The Maze of Urban Housing Markets," University of Chicago Press Economics Books, University of Chicago Press, number 9780226729510, September.
    2. Daniel Immergluck, 2008. "Community response to the foreclosure crisis: thoughts on local interventions," FRB Atlanta Community and Economic Development Discussion Paper 2008-01, Federal Reserve Bank of Atlanta.
    3. Kristin L. Perkins, 2009. "The geography of foreclosure in Contra Costa County, California," Community Development Working Paper 2009-03, Federal Reserve Bank of San Francisco.
    4. Francisca Richter & Youngme Seo, 2011. "Inter-regional home price dynamics through the foreclosure crisis," Working Papers (Old Series) 1119, Federal Reserve Bank of Cleveland.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arnott, Richard & Shevyakhova, Elizaveta, 2014. "Tenancy rent control and credible commitment in maintenance," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 72-85.
    2. David Agrawal & William H. Hoyt, 2014. "State Tax Differentials, Cross-Border Commuting, and Commuting Times in Multi-State Metropolitan Areas," CESifo Working Paper Series 4852, CESifo.
    3. Bill Randolph & Andrew Tice, 2013. "Who Lives in Higher Density Housing? A Study of Spatially Discontinuous Housing Sub-markets in Sydney and Melbourne," Urban Studies, Urban Studies Journal Limited, vol. 50(13), pages 2661-2681, October.
    4. Chris Leishman & Greg Costello & Steven Rowley & Craig Watkins, 2013. "The Predictive Performance of Multilevel Models of Housing Sub-markets: A Comparative Analysis," Urban Studies, Urban Studies Journal Limited, vol. 50(6), pages 1201-1220, May.
    5. Jeanette Findlay & Kenneth Gibb, 1998. "The pricing of estate agency and conveyancing services in Scotland," Journal of Property Research, Taylor & Francis Journals, vol. 15(2), pages 135-151, January.
    6. Díaz Serrano, Luis & Stoyanova, Alexandrina Petrova, 2009. "Mobility and Housing Satisfaction: An Empirical Analysis for Twelve EU Countries," Working Papers 2072/42895, Universitat Rovira i Virgili, Department of Economics.
    7. David C. Wheeler & Antonio Páez & Jamie Spinney & Lance A. Waller, 2014. "A Bayesian approach to hedonic price analysis," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 663-683, August.
    8. Judith Yates & Gavin Wood, 2005. "Affordable Rental Housing: Lost, Stolen and Strayed," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages 82-95, August.
    9. Edward (Ned) Hill, 2023. "What Is Economic Development? And What Is the Job of an Economic Development Professional?," Economic Development Quarterly, , vol. 37(1), pages 34-48, February.
    10. Tom Kauko, 2004. "A Comparative Perspective on Urban Spatial Housing Market Structure: Some More Evidence of Local Sub-markets Based on a Neural Network Classification of Amsterdam," Urban Studies, Urban Studies Journal Limited, vol. 41(13), pages 2555-2579, December.
    11. Craig A Watkins, 2001. "The Definition and Identification of Housing Submarkets," Environment and Planning A, , vol. 33(12), pages 2235-2253, December.
    12. Susin, Scott, 2002. "Rent vouchers and the price of low-income housing," Journal of Public Economics, Elsevier, vol. 83(1), pages 109-152, January.
    13. William C. Baer, 2014. "Using Housing Quality to Track Change in the Standard of Living and Poverty for Seventeenth-Century London," Historical Methods: A Journal of Quantitative and Interdisciplinary History, Taylor & Francis Journals, vol. 47(1), pages 1-18, March.
    14. 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.
    15. Zabel, Jeffrey E., 2004. "The demand for housing services," Journal of Housing Economics, Elsevier, vol. 13(1), pages 16-35, March.
    16. J. Rosie Tighe, 2013. "Responding to the Foreclosure Crisis in Appalachia: A Policy Review and Survey of Housing Counselors," Housing Policy Debate, Taylor & Francis Journals, vol. 23(1), pages 111-143, January.
    17. George Galster, 1996. "William Grigsby and the Analysis of Housing Sub-markets and Filtering," Urban Studies, Urban Studies Journal Limited, vol. 33(10), pages 1797-1805, December.
    18. Elif Alkay, 2008. "Housing Submarkets in Istanbul," International Real Estate Review, Global Social Science Institute, vol. 11(1), pages 113-127.
    19. Arnott, Richard J. & Braid, Ralph M., 1997. "A filtering model with steady-state housing," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 515-546, August.
    20. Yoshino, Naoyuki & Helble, Matthias & Aizawa, Toshiaki, 2015. "Housing Policies for Asia: A Theoretical Analysis by Use of a Demand and Supply Model," ADBI Working Papers 526, Asian Development Bank Institute.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:houspd:v:25:y:2015:i:3:p:549-573. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RHPD20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.