IDEAS home Printed from https://ideas.repec.org/a/jas/jasssj/2013-43-2.html
   My bibliography  Save this article

Modeling and Simulation of the Endogenous Dynamics of Housing Market Cycles

Author

Listed:

Abstract

The purpose of this study is to model and analyze by simulation the dynamics of endogenously created oscillations in real estate (housing) prices. A system dynamics simulation model is built to understand some of the structural sources of cycles in the key housing market variables, from the perspective of construction companies. The model focuses on the economic balance dynamics between supply and demand. Because of the unavoidable delays in the perception of the real estate market conditions and construction of new buildings, prices and related market variables exhibit strong oscillations. Two policies are tested to reduce the oscillations: decreasing the construction time, and taking into account the houses under construction in starting new projects. Both policies yield significantly reduced oscillations, more stable behaviors.

Suggested Citation

  • Birnur ÖzbaÅŸ & Onur Özgün & Yaman Barlas, 2014. "Modeling and Simulation of the Endogenous Dynamics of Housing Market Cycles," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 17(1), pages 1-19.
    • Handle: RePEc:jas:jasssj:2013-43-2
    as

    Download full text from publisher

    File URL: https://www.jasss.org/17/1/19/19.pdf
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Ali Termos & Stefano Picascia & Neil Yorke-Smith, 2021. "Agent-Based Simulation of West Asian Urban Dynamics: Impact of Refugees," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 24(1), pages 1-2.

    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:jas:jasssj:2013-43-2. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Francesco Renzini (email available below). General contact details of provider: .

    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.