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The house price gradient: evidence from Italian cities

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  • Elisabetta Manzoli

    (Banca d'Italia)

  • Sauro Mocetti

    (Banca d'Italia)

Abstract

The paper examines the geographical variability in house prices, focusing on the gradient from the center to peripheral areas. The results reveal large price differentials in the main urban areas, even more than those between the Centre-North and South. The higher real estate prices in the centers of urban areas are affected by centripetal pressures from the demand side (also related to the local economic activities) to which supply only partially adjusts. We find that better infrastructures and lower commuting times can, however, bring the suburbs closer to the center and accordingly mitigate the cost of living centrally and the inclination of the gradient. Finally, we find a center-periphery gradient also for incomes, though this is less steep than that of house prices; it follows that the ratio between the value of houses and income is higher in the city center and lower in the periphery.

Suggested Citation

  • Elisabetta Manzoli & Sauro Mocetti, 2016. "The house price gradient: evidence from Italian cities," Questioni di Economia e Finanza (Occasional Papers) 348, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_348_16
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    Cited by:

    1. Boeri, Filippo & Di Cataldo, Marco & Pietrostefani, Elisabetta, 2022. "Localised effects of re-allocated real estate mafia assets," LSE Research Online Documents on Economics 116682, London School of Economics and Political Science, LSE Library.
    2. Ka Shing Cheung & Chung Yim Yiu & Chuyi Xiong, 2021. "Housing Market in the Time of Pandemic: A Price Gradient Analysis from the COVID-19 Epicentre in China," JRFM, MDPI, vol. 14(3), pages 1-17, March.
    3. Loschiavo, David, 2021. "Big-city life (dis)satisfaction? The effect of urban living on subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 740-764.
    4. Pierluigi Bologna & Wanda Cornacchia & Maddalena Galardo, 2020. "Prudential policies, credit supply and house prices: evidence from Italy," Temi di discussione (Economic working papers) 1294, Bank of Italy, Economic Research and International Relations Area.
    5. Antonio Accetturo & Sauro Mocetti, 2019. "Historical Origins and Developments of Italian Cities," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(2), pages 205-222, July.
    6. Antonio Accetturo & Andrea Lamorgese & Sauro Mocetti & Paolo Sestito, 2019. "Local Development, Urban Economies and Aggregate Growth," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(2), pages 191-204, July.
    7. A Accetturo & A. R Lamorgese & S Mocetti & D Pellegrino, 2021. "Housing supply elasticity and growth: evidence from Italian cities," Journal of Economic Geography, Oxford University Press, vol. 21(3), pages 367-396.
    8. Sofia Vale & Felipa de Mello-Sampayo, 2021. "Effect of Hierarchical Parish System on Portuguese Housing Rents," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    9. Bologna, Pierluigi & Cornacchia, Wanda & Galardo, Maddalena, 2022. "Release of a liquidity regulation: What do we learn for credit and house prices?," Journal of Financial Stability, Elsevier, vol. 61(C).
    10. Davide Fiaschi & Angela Parenti & Cristiano Ricci, 2023. "Unveiling spatial patterns of population in Italian municipalities," Papers 2311.10520, arXiv.org.

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    More about this item

    Keywords

    housing prices; agglomeration; mobility; income;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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