The Structure of Housing Submarkets in a Metropolitain Region.

In this paper, it is examined whether the structure of constrained submarkets constructed according to three a priori classifications (property type, house value and geographical areas) differs from that of unconstrained submarkets constructed by means of principal component analysis and cluster analysis. This procedure makes it possible to assess the impact of imposing a priori constraints when housing submarkets are constructed. Data for Auckland, New Zealand, are used. The structure of housing submarkets in the Auckland region is found to be related primarily to the physical characteristics of properties. The other dimensions of housing submarkets gain more importance only when classifications with several submarkets are considered. The a priori classifications are found to lead to submarkets whose structure does not reflect the dimensions of housing submarkets in this metropolitan region.HOUSING ; REGIONAL DEVELOPMENT ; MARKET STRUCTURE

Why do the swiss rent?

At less than 34%, Switzerland has the lowest home ownership rate in Western Europe. This may seem odd given the economic strength of the country. We use household survey data for five Swiss cantons to explore some possible reasons for this. We estimate a tenure choice equation that allows us to analyze the impacts of a number of key variables on the ownership rate. We pay particular attention to the relative cost of owning and renting, which is a function of house prices, rents, and the user cost of owning. The latter is a function of income tax policy and expected house price inflation, among other things. We also measure mortgage underwriting criteria and consider rent control and other policies affecting rental housing. By simulating a number of hypothetical changes to taxation and other policies, underwriting criteria, and price levels, we assess the importance of these variables in explaining the ownership rate. We conclude that high house prices - relative to household income and wealth - and the tax on imputed rent are the most important causes of Switzerland's low ownership rate

Defining Residential Submarkets: Evidence from Sydney and Melbourne.

In this paper statistical techniques are used to analyze housing submarkets in Sydney and Malbourne, Australia.HOUSING ; STATISTICS