The Structure of Housing Submarkets in a Metropolitain Region
In this paper, it is examined whether the structure of constrained submarkets constructed according to three a priori classifications (property type, house value and geographical areas) differs from that of unconstrained submarkets constructed by means of principal component analysis and cluster analysis. This procedure makes it possible to assess the impact of imposing a priori constraints when housing submarkets are constructed. Data for Auckland, New Zealand, are used. The structure of housing submarkets in the Auckland region is found to be related primarily to the physical characteristics of properties. The other dimensions of housing submarkets gain more importance only when classifications with several submarkets are considered. The a priori classifications are found to lead to submarkets whose structure does not reflect the dimensions of housing submarkets in this metropolitan region.
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