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GGRB05 WK09 Session07 July 8 Urban housing markets; Residential location & Housing problems
I. Introduction group of high Y furthest out. E.g. London, NY, Paris,
A. How to conceive of housing Tokyo
B. Importance of housing in urban spatial terms Highest Y occupy closes position to CBD;
C. Housing markets, tenure type, mobility and Middle Y next; Lower Y pushed to periphery. E.g.
neighborhood change Manila, Bangkok
D. 3 main issues 5.Limits of bid rent curves
1.Neo-classical explanation of residential distributions a. Assumptions are limiting
using bid rent curves b. Low Y are constrained in location possibilities
2.Behavioral explanation of intra urban mobility As Y rises – preference for space are stronger
3.Perspectives on housing, housing market demand & than preference for accessibility
supply, & housing related issues Excludes competition from industry, government,
II. Residential location theory planning interventions with zoning laws
A. Neo-classical model: housing bid rent curves The existence of multi modal cities, where
1.Y= income; Describes how different Y groups are accessibility point can be different, makes the model
spatially distributed in a mono centric city. a simplification.
2.Assumption of the city B. Electric models – residential mobility
a. a perfect market obtains 1.Pacione model: based on residential mobility and
b. all property is owned by absentee landlords. neighborhood change
c. individuals and households try to maximize a. An electric non-neoclassical, quasi-behavioural
place utility model
d. accessibility is oriented to the CBD b. Purports to explain why people move and the
e. Different preferences obtain among different Y processes of neighborhood change
groups as b/w accessibility and space. 2.Why people move – residential relocation
f.Higher Y groups can manifest a bifurcation in those a. Forced
preferences can obtain different spatial spreads b. Voluntary
3.Two cases Avalue expectance model
a. Causes for these cases Decision to move – conceived as a product of
Excluding competition from industry and stress, based on ‘aspiration set’
government. Importance of place utility and constraints
Planning intervention with zoning laws. Neighborhood change: 5 stages
The existence of multi-nodal cities where the Gentrification vs.Abandonment (2 extremes)
accessibility point can be more diffused. The dynamics of gentrification
b. Spatial arrangements of 3 Y groups III. Intra urban mobility – the attempt at an explanation
(1)Higher Y group split in accessibility vs. space A. Life-cycle changes related to mobility
preference. 1.Completion of secondary education
(2)Higher Y has more preference for 2.Completion of tertiary education
accessibility due to transportation problems. 3.Completion of occupational training training
4.Bid rent curves 4.Marriage
a. Assumptions: (same as II-A-2) 5.Birth of 1 child
b. Three graphs: 6.Birth of last chile
st
Low Y closest to CBD; Middle Y next; High Y 7.1 child reaches secondary school age
furthest out with lowest density; (General) 8.Last child leaves home
Low Y pushed out of closest position to 9.Retirement
CBD->higher density; One group of high Y occupy 10. Death of a spouse.
closest position; Middle Y pushed further out; Other B. City-four types of space th
GGRB05 WK09 Session07 July 8 Urban housing markets; Residential location & Housing problems
1.Action space: familiar areas Acollection of various submarkets
2.Activity space: daily movement territory Needs to be disaggregated by house type; tenure;
3.Awareness space: have information of housing geographical location
opportunities b. Locationally fixed good:
a. Search space: [subset of awareness space] – new Can be sold only in that geographical location
residential locations evaluated Cannot be placed on different markets
Changes with time in city c. Unusual economic characteristics
Problems and barriers to gathering information Mostly determined by sales of existing
IV. Housing issues properties
A. Urban housing New buildings often only increase housing stock
1.Housing: a complex commodity by 1%/Annum
a. Various ideas B. 2 extremes in housing issues
Housing, home neighborhood 1.Gentrification: a circular process which can lead to
Purchased for a variety of reasons re-gentrification and super gentrification
b. Numerous submarket a. Theories of gentrifi
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