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Defining housing market areas using commuting and migration algorithms.Catalonia (Spain) as an applied case study

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Author Info

  • Vicente Royuela

    ()
    (Faculty of Economics, University of Barcelona)

  • Miguel Vargas

    ()
    (Faculty of Economics and Business, Diego Portales University.)

Abstract

In the literature on housing market areas, different approaches can be found to defining them, for example, using travel-to-work areas and, more recently, making use of migration data. Here we propose a simple exercise to shed light on which approach performs better. Using regional data from Catalonia, Spain, we have computed housing market areas with both commuting data and migration data. In order to decide which procedure shows superior performance, we have looked at uniformity of prices within areas. The main finding is that commuting algorithms present more homogeneous areas in terms of housing prices.

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Bibliographic Info

Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 200707.

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Length: 20 pages
Date of creation: Apr 2007
Date of revision: Apr 2007
Handle: RePEc:ira:wpaper:200707

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Postal: Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona
Web page: http://www.ub.edu/irea/
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  1. Goodman, Allen C. & Thibodeau, Thomas G., 1998. "Housing Market Segmentation," Journal of Housing Economics, Elsevier, vol. 7(2), pages 121-143, June.
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