Theoretical Reflections on Urban Housing and Housing Markets
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This paper theoretically explores urban housing and urban housing markets focusing on spatial externality, housing class, spatial pattern of urban housing market, allocation mechanisms for housing, housing submarkets, housing supply, actors, housing finance, housing demand, residential mobility, and residential location. Housing cannot be divorced from the legal systems and social structures which influence its production and use, or from the neighborhoods in which it is located. The latter renders a geographical perspective on housing as imperative. To study housing effectively involves the analysis of a major sector of the national economy, a plethora of institutions and agencies, demographic change, migration and social preferences, and constraints on the freedom of choice. Housing sub-markets are important because the assumption that they exist permeates much of the literature on residential mobility, neighborhood change, ghetto formation, racial segregation, and housing deterioration. An urban housing market, particularly in a large metropolitan area, does not operate as one large market but rather as a series of linked sub-markets. Recent shifts in demographic structure, notably the trend toward declining fertility, smaller household size, and an overall aging of the population, combined with an increasing diversity of life-styles, confirm that society’s housing needs in the next decade or two are likely to be very different from those in the past.
Abstract
This paper theoretically explores urban housing and urban housing markets focusing on spatial externality, housing class, spatial pattern of urban housing market, allocation mechanisms for housing, housing submarkets, housing supply, actors, housing finance, housing demand, residential mobility, and residential location. Housing cannot be divorced from the legal systems and social structures which influence its production and use, or from the neighborhoods in which it is located. The latter renders a geographical perspective on housing as imperative. To study housing effectively involves the analysis of a major sector of the national economy, a plethora of institutions and agencies, demographic change, migration and social preferences, and constraints on the freedom of choice. Housing sub-markets are important because the assumption that they exist permeates much of the literature on residential mobility, neighborhood change, ghetto formation, racial segregation, and housing deterioration. An urban housing market, particularly in a large metropolitan area, does not operate as one large market but rather as a series of linked sub-markets. Recent shifts in demographic structure, notably the trend toward declining fertility, smaller household size, and an overall aging of the population, combined with an increasing diversity of life-styles, confirm that society’s housing needs in the next decade or two are likely to be very different from those in the past.
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