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Local Housing Supply and the Impact of History and Geography

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  • Geoffrey Meen
  • Christian Nygaard

Abstract

This paper considers the impact of existing land use patterns on housing supply price elasticities in local areas of England, under existing planning policies. The paper demonstrates that, despite common national planning policies, local supply responses to market pressures vary considerably, because of differences in historical land uses. The study area covers the Thames Gateway and Thames Valley, which lie to the east and west of London respectively. However, whereas the latter is one of the wealthiest areas of England, the former includes some of the highest pockets of deprivation and was a government priority area for increasing housing supply. Due to differences in historical land use and geography, the price elasticity in the least constrained area is approximately six times higher than the most constrained.

Suggested Citation

  • Geoffrey Meen & Christian Nygaard, 2011. "Local Housing Supply and the Impact of History and Geography," Urban Studies, Urban Studies Journal Limited, vol. 48(14), pages 3107-3124, November.
    • Handle: RePEc:sae:urbstu:v:48:y:2011:i:14:p:3107-3124
    DOI: 10.1177/0042098010394689
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    References listed on IDEAS

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    2. Oikarinen, Elias & Peltola, Risto & Valtonen, Eero, 2015. "Regional variation in the elasticity of supply of housing, and its determinants: The case of a small sparsely populated country," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 18-30.
    3. Joe Hurley & Gavin Wood & Lucy Groenhart, 2018. "Long run urban analysis using property records: A methodological case study of land use change," Urban Studies, Urban Studies Journal Limited, vol. 55(2), pages 427-442, February.
    4. Geoffrey Meen, 2016. "Spatial housing economics: A survey," Urban Studies, Urban Studies Journal Limited, vol. 53(10), pages 1987-2003, August.
    5. Wang, Boyi & Tian, Li & Yao, Zhihao, 2018. "Institutional uncertainty, fragmented urbanization and spatial lock-in of the peri-urban area of China: A case of industrial land redevelopment in Panyu," Land Use Policy, Elsevier, vol. 72(C), pages 241-249.
    6. Zwiers, Merle & Bolt, Gideon & van Ham, Maarten & van Kempen, Ronald, 2014. "Neighborhood Decline and the Economic Crisis," IZA Discussion Papers 8749, Institute of Labor Economics (IZA).
    7. Christian A. Nygaard & George Galster & Stephen Glackin, 2024. "The Size and Spatial Extent of Neighborhood Price Impacts of Infill Development: Scale Matters?," The Journal of Real Estate Finance and Economics, Springer, vol. 69(2), pages 277-306, August.
    8. Furth, Salim, 2019. "Housing Supply in the 2010s," Working Papers 09588, George Mason University, Mercatus Center.
    9. Zwiers, Merle & Kleinhans, Reinout & van Ham, Maarten, 2015. "Divided Cities: Increasing Socio-Spatial Polarization within Large Cities in the Netherlands," IZA Discussion Papers 8882, Institute of Labor Economics (IZA).
    10. Bimonte, Salvatore & Stabile, Arsenio, 2015. "Local taxation and urban development. Testing for the side-effects of the Italian property tax," Ecological Economics, Elsevier, vol. 120(C), pages 100-107.
    11. Huub Ploegmakers & Pascal Beckers & Erwin Van der Krabben, 2018. "The impact of planning intervention on business development: Evidence from the Netherlands," Urban Studies, Urban Studies Journal Limited, vol. 55(14), pages 3252-3273, November.
    12. Geok Peng Yeap & Hooi Hooi Lean, 2020. "Supply elasticity of new housing supply in Malaysia: an analysis across housing sub-markets," Economics Bulletin, AccessEcon, vol. 40(1), pages 807-820.
    13. Jinsi Liu & Hu Xiang & Shengjiao Zhu & Shixiang Chen, 2024. "Spatial heterogeneity analysis of biased land resource supply policies on housing prices and innovation efficiency," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    14. Christian Nygaard & Geoffrey Meen, 2013. "The Distribution of London Residential Property Prices and the Role of Spatial Lock-in," Urban Studies, Urban Studies Journal Limited, vol. 50(12), pages 2535-2552, September.
    15. Beenstock, Michael & Felsenstein, Daniel, 2015. "Estimating spatial spillover in housing construction with nonstationary panel data," Journal of Housing Economics, Elsevier, vol. 28(C), pages 42-58.
    16. Maximilian Günnewig‐Mönert & Ronan C. Lyons, 2024. "Housing prices, costs, and policy: The housing supply equation in Ireland since 1970," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 52(4), pages 1075-1102, July.

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