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Change in the Distribution of House Prices across Spanish Cities

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  • Nicodemo, Catia

    () (University of Oxford)

  • Raya, Josep M.

    () (Universitat Pompeu Fabra)

Abstract

This paper presents the quantile estimation of house price between two years, 2004 and 2007 (a boom house price period) in several Spanish cities. We decompose the change in house price distribution into portions: changes in the distributions of the explanatory variables and changes in coefficients over time. Our main results are three. Firstly, from 2004 to 2007, the difference in housing price in Spain is larger at lower and higher percentiles. Secondly, the most important part of the difference in the distribution of housing prices between 2004 and 2007 is explained by coefficients (with all the variables contributing similarly). Thirdly, among cities, we can find a lot of variation in change of house price distribution. With respect to Spain's cities pattern, Madrid, Valencia and Bilbao, are the cities which big difference among them.

Suggested Citation

  • Nicodemo, Catia & Raya, Josep M., 2012. "Change in the Distribution of House Prices across Spanish Cities," IZA Discussion Papers 6503, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6503
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    8. 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.
    9. Anthony Orlando, 2018. "Asset Markets, Credit Markets, and Inequality: Distributional Changes in Housing, 1970-2016," ERES eres2018_182, European Real Estate Society (ERES).
    10. 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.
    11. 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.
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    14. 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.
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    More about this item

    Keywords

    housing market; quantile regression; housing price distribution; counterfactual distribution;
    All these keywords.

    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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