Canadian City Housing Prices and Urban Market Segmentation

20 Pages Posted: 1 Nov 2007

See all articles by Jason Allen

Jason Allen

Government of Canada - Bank of Canada

Robert A. Amano

Bank of Canada & CREFE

David P. Byrne

The University of Melbourne

Allan Gregory

Queen's University

Multiple version iconThere are 2 versions of this paper

Date Written: May 20.2007

Abstract

The authors provide a detailed empirical analysis of Canadian city housing prices. They examine the long-run relationship between city house prices in Canada from 1981 to 2005 as well as idiosyncratic relations between city prices and city-specific variables. The results suggest that city house prices are only weakly correlated in the long run, and that there is a disconnect between house prices and interest rates. City-specific variables such as union wage levels, new-housing prices, and the issuance of building permits tend to be positively related to city existing-house prices. Surprisingly, there is mixed evidence with respect to standard measures of economic activity, such as labour force and per capita GDP.

Keywords: Housing, Canada, cointegration

JEL Classification: C22, C32, R2

Suggested Citation

Allen, Jason J. and Amano, Robert A. and Byrne, David P. and Gregory, Allan, Canadian City Housing Prices and Urban Market Segmentation (May 20.2007). Available at SSRN: https://ssrn.com/abstract=1026270 or http://dx.doi.org/10.2139/ssrn.1026270

Jason J. Allen

Government of Canada - Bank of Canada ( email )

Ottawa, Ontario K1A 0G9
Canada

Robert A. Amano

Bank of Canada & CREFE ( email )

234 Wellington Street
Ottawa, Ontario K1A 0G9
Canada
613-782-8827 (Phone)
613-782-7163 (Fax)

David P. Byrne

The University of Melbourne ( email )

Level 4
111 Barry Street
Melbourne, Victoria 3010
Australia

HOME PAGE: http://sites.google.com/view/dprbyrne/

Allan Gregory (Contact Author)

Queen's University ( email )

Kingston, Ontario K7L 3N6
Canada

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