Metropolitan-Specific Estimates of the Price Elasticity of Supply of Housing, and Their Sources

Expectation Adjustment in the Housing Market: Insights from the Scottish Auction System

“…Dwelling density is employed as a proxy for this factor given that in areas with denser population, we expect higher concentration of bidders, ceteris paribus. A corollary to this is, as Green et al (2005) show, supply elasticity and population density are negatively related. Therefore, in densely populated areas where housing supply is price inelastic, we expect exacerbation of over bidding and of housing market bubbles (Glaeser et al, 2008).…”

Land use regulations and the value of land and housing: An intra-metropolitan analysis

“…Although much of the early research on urban land use regulations focused on land prices (Ohls et al, 1974;Rose, 1986), the impact of regulations on housing prices has received more attention in recent decades. Importantly, access to more detailed data and use of better empirical methods have enabled researchers to carry out more convincing empirical analyses of housing market effects (Glaeser and Ward, 2009;Green et al, 2005;Huang and Tang, 2012;Saiz, 2010). …”

“…This intra-MSA variation has received limited attention in the literature, especially in terms of its relation to land prices. Unlike at the regional level, where evidence for the impact of land use regulations on housing prices is rather strong (Green et al, 2005;Huang and Tang, 2012;Saiz, 2010), predicted city level impacts of restrictions are less clear, especially on land prices (Glaeser and Ward, 2009;Ihlanfeldt, 2007;Ohls et al, 1974).…”

House prices, housing development costs, and the supply of new single-family housing in German counties and cities

“…since the housing supply effect of time-constant policy variables will be captured by the location fixed effects, it will not be possible to identify the causes of local heterogeneity in supply elasticity, which has been the focus of various previous studies (Green et al, 2005;Saiz, 2010). 24 The main focus of the analysis is, however, an unbiased estimate of β 1 , the average local elasticity of new housing supply with regard to price.…”

“…One of the key parameters of investigation is housing supply elasticity, the sensitivity to which new housing investment responds to (changes in) existing house prices. While older studies mainly use national-level data over long time periods to draw quantitative conclusions about the price elasticity of housing supply, younger publications focus overwhelmingly on regional or local housing market data; recent contributions include Green et al (2005), Meen (2005, Hwang and Quigley (2006), Goodman and Thibodeau (2008), , Ball et al (2010) and Saiz (2010). The advantage of using local rather than national data in studying housing supply arises from the fact that housing markets are essentially spatially separated, following from the fact that houses are immobile and hence both produced and consumed locally.…”