We discuss challenges of spatial housing market analyses, emphasizing spatial patterns and dynamics, and uniqueness of housing as a composite good. Spatial fixity implies that a house cannot be detached from its location, leading to a complex relationship between housing and space. Then, spatial analyses and modelling must capture three key elements: spatial patterns (heterogeneity), spatial spillovers (dependence) and spatial scale. Together, nonstationarity, nongranularity and cointegration must be modelled. Emphasizing the endogenous relationship between space and housing, we link theory and methods using illustrations from urban housing markets.
|Title of host publication
|Handbook of Housing Economics
|Kenneth Gibb, Chris Leishman, Alex Marsh, Geoff Meen, Rachel Ong-Vitorj, Craig Watkins
|Accepted/In press - 2022