Feedback between Real Estate and Urban Economics

26 Pages Posted: 8 Feb 2010

See all articles by Todd M. Sinai

Todd M. Sinai

University of Pennsylvania - The Wharton School; National Bureau of Economic Research (NBER)

Date Written: 2009-09

Abstract

This paper considers the implications of increasing land supply constraints in the United States on urban demand. First, because shifts in demand are now capitalized more into the price of land, house prices in some metropolitan areas have grown increasingly unaffordable to typical households. This might have an effect on the fundamental character of such cities. Second, the effect of home owners’ financial interests as landowners on their decisions about what regulations or investments in their communities to support may become stronger. Third, researchers may now be able to better use land prices to make inferences about urban demand. However, interpreting real estate prices still is tricky.

Suggested Citation

Sinai, Todd M., Feedback between Real Estate and Urban Economics (2009-09). Journal of Regional Science, Vol. 50, Issue 1, pp. 423-448, February 2010, Available at SSRN: https://ssrn.com/abstract=1547417 or http://dx.doi.org/10.1111/j.1467-9787.2009.00660.x

Todd M. Sinai (Contact Author)

University of Pennsylvania - The Wharton School ( email )

1465 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6302
United States
215-898-5390 (Phone)
215-573-2220 (Fax)

HOME PAGE: http://real.wharton.upenn.edu/~sinai

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
393
PlumX Metrics