Understanding neighbourhood housing markets: Regional context, disequilibrium, sub-markets and supply

Neighbourhood housing markets play a pivotal role in the evolution of the demographic, social and economic functioning of neighbourhoods, and hence are necessarily a key concern for national and local policy makers. This paper examines propositions about the determinants of neighbourhood housing market outcomes in England, particularly price changes over the last 10-20 years. These concern the influence of (sub-)regional economic and demographic forces, the nature and persistence of disequilibrium, the existence of sub-markets and the influence of supply. Data from a wide range of sources at ward and local levels underpins models of price level and change set within a multi-level structure. Results are discussed in relation to the role of neighbourhood in an understanding of the micro-structures of housing markets, as well as in relation to contemporary policies.