IDEAS home Printed from https://ideas.repec.org/p/red/sed014/1163.html
   My bibliography  Save this paper

Income Inequality, Neighborhoods, Prices and the Liquidity of Housing

Author

Listed:
  • Huw Lloyd-Ellis

    (Queen's University)

  • Derek Stacey

    (Ryerson University)

  • Allen Head

    (Department of Economics)

Abstract

A model of a city comprised of heterogeneous neighborhoods featuring different levels of amenities, populated by households differing in income and preference for housing services is developed. Houses are constructed by a competitive development industry and either rented or sold to households through a process of competitive search. Along a balanced growth path, both the composition of the city and the rate of home-ownership depend on the distribution of income and construction costs. Higher income households live in better neighborhoods and are more likely on average (but not strictly so) to be homeowners than lower income ones. Due to search, houses sell at liquidity discounts associated with expected time on the market. The relationships between these discounts and both house prices and neighborhood quality depend on the distribution of income through its effect on the composition of the city, both with regard to the relative sizes of neighborhoods and the rate of home-ownership overall.

Suggested Citation

  • Huw Lloyd-Ellis & Derek Stacey & Allen Head, 2014. "Income Inequality, Neighborhoods, Prices and the Liquidity of Housing," 2014 Meeting Papers 1163, Society for Economic Dynamics.
    • Handle: RePEc:red:sed014:1163
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:red:sed014:1163. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .

    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.