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Change in the distribution of house prices across Spanish cities

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  • Nicodemo, Catia
  • Raya, Josep Maria

Abstract

This paper presents quantile estimates of house prices across two years, 2004 and 2007, in several Spanish cities. We decompose the change in the house price distribution into portions due to changes in the distributions of the explanatory variables and to changes in coefficients over time. We obtain three main results. First, from 2004 to 2007, the change in house prices in Spain is larger at both lower and higher percentiles. Second, most of the difference in the distribution of house prices between 2004 and 2007 is explained by coefficients (with all the variables contributing similarly). Third, we find notable variation in the changes in the house price distribution across cities, with Madrid, Valencia, and Bilbao showing the largest changes.

Suggested Citation

  • Nicodemo, Catia & Raya, Josep Maria, 2012. "Change in the distribution of house prices across Spanish cities," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 739-748.
  • Handle: RePEc:eee:regeco:v:42:y:2012:i:4:p:739-748 DOI: 10.1016/j.regsciurbeco.2012.05.003
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    Cited by:

    1. Rosa Sanchis-Guarner, 2017. "Decomposing the Impact of Immigration on House Prices," CReAM Discussion Paper Series 1706, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    2. Villar, Jaume García & Raya, Josep Maria, 2015. "Use of a Gini index to examine housing price heterogeneity: A quantile approach," Journal of Housing Economics, Elsevier, vol. 29(C), pages 59-71.
    3. Thomschke, Lorenz, 2015. "Changes in the distribution of rental prices in Berlin," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 88-100.
    4. Rosa Sanchis-Guarner, 2017. "Decomposing the Impact of Immigration on House Prices," SERC Discussion Papers 0223, Spatial Economics Research Centre, LSE.
    5. Kholodilin, Konstantin A. & Ulbricht, Dirk, 2015. "Urban house prices: A tale of 48 cities," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-43.
    6. Thomschke, Lorenz, 2016. "Distributional price effects of rent controls in Berlin: When expectation meets reality," CAWM Discussion Papers 89, University of Münster, Center of Applied Economic Research Münster (CAWM).
    7. Fesselmeyer, Eric & Le, Kien T. & Seah, Kiat Ying, 2013. "Changes in the white–black house value distribution gap from 1997 to 2005," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 132-141.
    8. Paul E. Carrillo & Jonathan Rothbaum, 2014. "Counterfactual Spatial Distributions," Working Papers 2014-05, The George Washington University, Institute for International Economic Policy.
    9. Qin, Yu & Zhu, Hongjia & Zhu, Rong, 2016. "Changes in the distribution of land prices in urban China during 2007–2012," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 77-90.
    10. Sofie R. Waltl, 2015. "Variation across price segments and locations: A comprehensive quantile regression analysis of the Sydney housing market," Graz Economics Papers 2015-09, University of Graz, Department of Economics.
    11. Pan, Yao, 2016. "Understanding the rural and urban household saving rise in China," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 46-59.

    More about this item

    Keywords

    Housing price distribution; Housing market; Quantile regression; Counterfactual distribution;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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