Report
Housing demand and community choice: an empirical analysis
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.
Keywords: neighborhoods; forecasting; Florida; housing;
JEL Classification: R21;
Access Documents
File(s): File format is application/pdf https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr16.pdf
File(s): File format is text/html https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr16.html
Authors
Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Staff Reports
Publication Date: 1996
Number: 16
Pages: 33 pages
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.