IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/243985.html
   My bibliography  Save this article

Industry Concentration and Regional Housing Market Performance

Author

Listed:
  • Barth, James R.
  • Benefield, Justin D.
  • Hollans, Harris

Abstract

Prior literature has analyzed determinants of housing appreciation rates at the regional level, including several studies on inter-regional differences. Generally, these previous studies have identified income, population shifts, and other demographic changes as the most im-portant factors in explaining regional price appreciation for single-family residential proper-ties. Existing literature has not considered the impact that regional industry concentration might have on regional housing appreciation. This study uses a Federal Housing Finance Ad-ministration price index, along with demographic and industry concentration data collected from the U.S. Census and the Bureau of Labor Statistics, to investigate whether a more or less highly concentrated industry base, as measured by a Herfindahl index, contributes to regional housing market performance. The questions of housing market impacts related to increasing concentration for a reasonably diversified metropolitan statistical area and impacts related to increasing diversification for an already-concentrated area are also examined.

Suggested Citation

  • Barth, James R. & Benefield, Justin D. & Hollans, Harris, 2015. "Industry Concentration and Regional Housing Market Performance," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(2).
    • Handle: RePEc:ags:jrapmc:243985
    DOI: 10.22004/ag.econ.243985
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/243985/files/jrap_v45_n2_a2_barth_etal.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.243985?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. G. Donald Jud & Dan T. Winkler, 2002. "The Dynamics of Metropolitan Housing Prices," Journal of Real Estate Research, American Real Estate Society, vol. 23(1/2), pages 29-46.
    2. Norman Miller & Liang Peng & Michael Sklarz, 2011. "House Prices and Economic Growth," The Journal of Real Estate Finance and Economics, Springer, vol. 42(4), pages 522-541, May.
    3. Cebula, Richard J. & Alexander, Gigi M., 2006. "Determinants of Net Interstate Migration, 2000-2004," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(2), pages 1-8.
    4. Frank Clemente & Richard B. Sturgis, 1971. "Population Size and Industrial Diversification," Urban Studies, Urban Studies Journal Limited, vol. 8(1), pages 65-68, February.
    5. Reichert, Alan K, 1990. "The Impact of Interest Rates, Income, and Employment upon Regional Housing Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 3(4), pages 373-391, December.
    6. Niles C. Schoening & Larry Sweeney, 1989. "Applying an Industrial Diversification Decision Model to Small Regions," The Review of Regional Studies, Southern Regional Science Association, vol. 19(3), pages 14-17, Fall.
    7. Christopher A. Manning, 1986. "Intercity Differences in Home Price Appreciation," Journal of Real Estate Research, American Real Estate Society, vol. 1(1), pages 45-66.
    8. William Goetzmann & Liang Peng & Jacqueline Yen, 2012. "The Subprime Crisis and House Price Appreciation," The Journal of Real Estate Finance and Economics, Springer, vol. 44(1), pages 36-66, January.
    9. Katherine A. Kiel & Richard T. Carson, 1990. "An Examination of Systematic Differences in the Appreciation of Individual Housing Units," Journal of Real Estate Research, American Real Estate Society, vol. 5(3), pages 301-318.
    10. John R. Kort, 1981. "Regional Economic Instability and Industrial Diversification in the U.S," Land Economics, University of Wisconsin Press, vol. 57(4), pages 596-608.
    11. George W. Hammond & Eric Thompson, 2004. "Employment Risk in U.S. Metropolitan and Nonmetropolitan Regions: the Influence of Industrial Specialization and Population Characteristics," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 517-542, August.
    12. Niles C. Schoening & Larry E. Sweeney, 1992. "Proactive Industrial Development Strategies And Portfolio Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 22(3), pages 227-238, Winter.
    13. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    14. Kim, Young Se & Rous, Jeffrey J., 2012. "House price convergence: Evidence from US state and metropolitan area panels," Journal of Housing Economics, Elsevier, vol. 21(2), pages 169-186.
    15. Kuhlmann, Angela & Decker, Christopher S. & Wohar, Mark E., 2008. "The Composition of Industry and the Duration of State Recessions," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(3), pages 1-16.
    16. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-793, August.
    17. Bruce D. Wundt, 1992. "Reevaluating Alternative Measures Of Industrial Diversity As Indicators Of Regional Cyclical Variations," The Review of Regional Studies, Southern Regional Science Association, vol. 22(1), pages 59-73, Summer.
    18. Coate, Douglas & Vanderhoff, James, 1993. "Race of the Homeowner and Appreciation of Single-Family Homes in the United States," The Journal of Real Estate Finance and Economics, Springer, vol. 7(3), pages 205-212, November.
    19. repec:bla:jregsc:v:44:y:2004:i:3:p:517-542:2 is not listed on IDEAS
    20. Paul B. Siegel & Jeffrey Alwang & Thomas G. Johnson, 1994. "Toward An Improved Portfolio Variance Measure Of Regional Economic Stability," The Review of Regional Studies, Southern Regional Science Association, vol. 24(1), pages 71-86, Summer.
    21. Attaran, Mohsen, 1986. "Industrial Diversity and Economic Performance in U.S. Areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 20(2), pages 44-54, July.
    22. Eli Beracha & Hilla Skiba, 2011. "Momentum in Residential Real Estate," The Journal of Real Estate Finance and Economics, Springer, vol. 43(3), pages 299-320, October.
    23. Clark, David E. & Herrin, William E. & Knapp, Thomas A. & White, Nancy E., 2006. "Incomplete Compensation and Migration Behavior: Has Anything Changed Between 1990 and 2000?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(2), pages 1-13.
    24. George R. Neumann & Robert H. Topel, 1991. "Employment Risk, Diversification, and Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1341-1365.
    25. repec:bla:jregsc:v:44:y:2004:i:3:p:517-542:1 is not listed on IDEAS
    26. Zabel, Jeffrey E, 1999. "Controlling for Quality in House Price Indices," The Journal of Real Estate Finance and Economics, Springer, vol. 19(3), pages 223-241, November.
    27. Joseph Gyourko & Albert Saiz & Anita Summers, 2008. "A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index," Urban Studies, Urban Studies Journal Limited, vol. 45(3), pages 693-729, March.
    28. Albert Saiz, 2010. "The Geographic Determinants of Housing Supply," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1253-1296.
    29. Cebula, Richard, 1978. "The Determinants of Human Migration," MPRA Paper 58401, University Library of Munich, Germany.
    30. Manning, Christopher A, 1989. "Explaining Intercity Home Price Differences," The Journal of Real Estate Finance and Economics, Springer, vol. 2(2), pages 131-149, June.
    31. Norman Miller & Liang Peng, 2006. "Exploring Metropolitan Housing Price Volatility," The Journal of Real Estate Finance and Economics, Springer, vol. 33(1), pages 5-18, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Coulson, N. Edward & McCoy, Shawn J. & McDonough, Ian K., 2020. "Economic diversification and the resiliency hypothesis: Evidence from the impact of natural disasters on regional housing values," Regional Science and Urban Economics, Elsevier, vol. 85(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. J. C. Dissart, 2003. "Regional Economic Diversity and Regional Economic Stability: Research Results and Agenda," International Regional Science Review, , vol. 26(4), pages 423-446, October.
    2. repec:bla:jregsc:v:44:y:2004:i:3:p:517-542:1 is not listed on IDEAS
    3. Coulson, N. Edward & Liu, Crocker H. & Villupuram, Sriram V., 2013. "Urban economic base as a catalyst for movements in real estate prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 1023-1040.
    4. Baldwin, John R. Brown, W. Mark, 2003. "Volatilité de l'emploi au niveau régional dans le secteur canadien de la fabrication : les effets de la spécialisation et du commerce," Série de documents de recherche sur l'analyse économique (AE) 2003005f, Statistics Canada, Direction des études analytiques.
    5. John Baldwin & W. Brown, 2004. "Regional manufacturing employment volatility in Canada: The effects of specialisation and trade," Economics of Governance, Springer, vol. 83(3), pages 519-541, July.
    6. Huang, MeiChi, 2018. "Time-varying diversification strategies: The roles of state-level housing assets in optimal portfolios," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 145-172.
    7. Fritz, Oliver, 1999. "Optimal Management of a Regional Income and Pollution Portfolio," ERSA conference papers ersa99pa187, European Regional Science Association.
    8. An, Galina & Becker, Charles & Cheng, Enoch, 2021. "Housing price appreciation and economic integration in a transition economy: Evidence from Kazakhstan," Journal of Housing Economics, Elsevier, vol. 52(C).
    9. MeiChi Huang, 2019. "Risk diversification gains from metropolitan housing assets," Review of Financial Economics, John Wiley & Sons, vol. 37(4), pages 453-481, October.
    10. Gerald A. Carlino & Robert Defina & Keith Sill, 2013. "The Long and Large Decline in State Employment Growth Volatility," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(2‐3), pages 521-534, March.
    11. Wenli Yan & Douglas A. Carr, 2013. "Federal Environmental Regulation Impacts on Local Economic Growth and Stability," Economic Development Quarterly, , vol. 27(3), pages 179-192, August.
    12. Alison Felix, 2012. "Industrial diversity, growth, and volatility in the seven states of the Tenth District," Economic Review, Federal Reserve Bank of Kansas City, vol. 97(Q IV).
    13. Xin Mai & Roger C. K. Chan & Chaoqun Zhan, 2019. "Which Sectors Really Matter for a Resilient Chinese Economy? A Structural Decomposition Analysis," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    14. An-Pin Wei & Wei-Ling Huang & Chih-Yuan Yang & Ming-Chi Chen, 2013. "The role of market imperfections in the relationship between housing prices and household credit: Evidence from Taiwan," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 131-143, November.
    15. Curtis Simon, 2014. "Sectoral Change And Unemployment During The Great Recession, In Historical Perspective," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 828-855, November.
    16. Roberto Ezcurra, 2011. "Unemployment Volatility and Regional Specialization in the European Union," Regional Studies, Taylor & Francis Journals, vol. 45(8), pages 1121-1137.
    17. Chimezie Ozurumba & Younhee Kim, 2017. "New development: Evaluating state revenue portfolio stability—a case of commercial casino taxes," Public Money & Management, Taylor & Francis Journals, vol. 37(7), pages 521-526, November.
    18. Ryan Greenaway‐McGrevy & Arthur Grimes & Mark Holmes, 2019. "Two countries, sixteen cities, five thousand kilometres: How many housing markets?," Papers in Regional Science, Wiley Blackwell, vol. 98(1), pages 353-370, February.
    19. Huang, MeiChi, 2014. "Bubble-like housing boom–bust cycles: Evidence from the predictive power of households’ expectations," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(1), pages 2-16.
    20. Aviad Tur-Sinai, 2019. "Is a Municipal Boundary a Good Stratification Variable?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(3), pages 1075-1098, August.
    21. Sarah A. Low & Stephan Weiler, 2012. "Employment Risk, Returns, and Entrepreneurship," Economic Development Quarterly, , vol. 26(3), pages 238-251, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:243985. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.