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Housing demand and community choice: an empirical analysis

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  • Carol Rapaport

Abstract

Housing demand reflects the household's simultaneous choice of neighborhood, whether to own or rent the dwelling, and the quantity of housing services demanded. Existing literature emphasizes the final two factors, but overlooks the choice of community. This paper develops an econometric model that incorporates all three components, and then estimates this model using a sample of households in Tampa, Florida. Incorporating community choice increases the price elasticity of demand and reduces the differential between white and comparable nonwhite households. The results are robust to the inclusion of permanent income and taxes.

Suggested Citation

  • Carol Rapaport, 1996. "Housing demand and community choice: an empirical analysis," Staff Reports 16, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednsr:16
    Note: For a published version of this report, see Carol Rapaport, "Housing Demand and Community Choice: An Empirical Analysis," Journal of Urban Economics 42, no. 2 (September 1997): 243-61.
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    neighborhoods; forecasting; Florida; housing;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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