What forces drive the dynamic interaction between regional housing prices?
What forces drive the dynamic interaction between regional housing prices?
Author(s): Yun-Ling Wu, Chien-Lin Lu, Ming-Chi Chen, Fang-Ni ChuSubject(s): Micro-Economics, Demography and human biology, Rural and urban sociology, Economic development, Migration Studies, Marketing / Advertising
Published by: Vilnius Gediminas Technical University
Keywords: Copula model; Dynamic correlation; Regional housing prices;
Summary/Abstract: This paper examines the dynamic interaction between regional housing prices in the United States. We use the copula method to explore the dependent distribution of housing prices in ten metropolitan statistical areas (MSAs) in three regions. The results generally show that changes in time-varying correlation result from different trends in regional housing prices. We regress housing price dynamic correlation on regional economic variables, finding that the economic co-movement mechanism determines the housing price correlation in the Western and Great Lakes regions, while the migration mechanism drives the housing price correlation in the Eastern region. We also find that economic co-movement is the main force driving the housing price correlation between regions.
Journal: International Journal of Strategic Property Management
- Issue Year: 21/2017
- Issue No: 3
- Page Range: 225-239
- Page Count: 15
- Language: English