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Housing Consumption Disequilibrium and Local Residential Mobility

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  • J L Goodman Jr

    (The Urban Institute, 2100 M Street, NW, Washington, DC 20037, USA)

Abstract

An economic theory of local residential mobility is developed and empirically examined. The theory predicts that local mobility is most likely to occur among households whose actual housing consumption deviates the most from their utility-maximizing levels and whose monetary and psychic costs of moving are least. Two separate models are used in applying the theory to data obtained from a national household survey in the USA. The inclusion of variables designed to capture the needs of families to adjust their housing adds little explanatory power compared with more conventional predictors of mobility, although the housing-consumption variables generally have plausible effects on household mobility. Not all local moves are motivated primarily by housing considerations—nearly a third of all local moves are associated with new household formation, marriage, or divorce.

Suggested Citation

  • J L Goodman Jr, 1976. "Housing Consumption Disequilibrium and Local Residential Mobility," Environment and Planning A, , vol. 8(8), pages 855-874, December.
    • Handle: RePEc:sae:envira:v:8:y:1976:i:8:p:855-874
    DOI: 10.1068/a080855
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    References listed on IDEAS

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    1. Carliner, Geoffrey, 1973. "Income Elasticity of Housing Demand," The Review of Economics and Statistics, MIT Press, vol. 55(4), pages 528-532, November.
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    Cited by:

    1. Malpezzi, Stephen, 2001. "The Contributions of Stephen K. Mayo to Housing and Urban Economics," Journal of Housing Economics, Elsevier, vol. 10(2), pages 72-108, June.

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