The spatial impact of employment centres on housing markets. Issue 4 (2nd October 2017)

• Record Type: Journal Article
• Authors: Szumilo, Nikodem; Laszkiewicz, Edyta; Fuerst, Franz
• Is Part Of: Spatial economic analysis. Volume 12:Issue 4(2017)
• Page Start: 472
• Page End: 491
• Publication Date: 2017-10-02
• Subjects: housing markets -- labour markets -- employment centres -- spatial regional economics; 住房市场 -- 劳动市场 -- 就业中心 -- 空间区域经济; marchés du logement -- marchés de l'emploi -- bassins d'emploi -- économie régionale spatiale; mercados de la vivienda -- mercados laborales -- centros de empleo -- economía regional espacial; J21 -- J31 -- O18 -- R11; Space in economics -- Periodicals; Economic geography -- Periodicals; Space in economics -- Econometric models -- Periodicals; Urbanization -- Periodicals; Espace (Économie politique) -- Périodiques; Économétrie -- Périodiques; Géographie économique -- Périodiques; Économie industrielle -- Périodiques; Économie du travail -- Périodiques; Économie urbaine -- Périodiques; Politique économique -- Périodiques; Relations économiques internationales -- Périodiques; 330.9
• DOI: 10.1080/17421772.2017.1339119
• Languages: English
• ISSNs: 1742-1772

Abstract

ABSTRACT: The spatial impact of employment centres on housing markets. Spatial Economic Analysis . Local economic growth tends to affect neighbourhood house prices unevenly. It has been observed that prime locations experience price hikes far in excess of the surrounding local area. Yet, this phenomenon is not well captured by existing economic models. This research provides a model of spatial and temporal interactions between housing and employment markets. The results show that rapid growth of employment centres increases house prices in neighbouring locations even after adjusting for fundamentals. It is concluded that spatial clustering of companies creates an option value for existing and potential employees that goes beyond ease of access for commuting purposes.