Housing Choice, Residential Mobility, and Hedonic Approaches

  • David M. Brasington
Reference work entry


This chapter explores the literature on residential mobility and house price hedonics. Residential mobility studies the decision of economic agents to move or not and, if they move, their choice of new residence. Topics covered in this chapter include the theory behind the move-or-stay decision, modeling intra- and interregional moves, empirically validated determinants of moving, and macro- and microlevel studies on mobility. Next, house price hedonics explain the price of a house as the sum of all the things that give a house value, from structural characteristics like the number of full bathrooms to public services and neighborhood characteristics that the house experiences. The chapter discusses the theory behind hedonics, applications of the technique, and empirical approaches to identify hedonic house price studies and second-stage hedonic regressions of the demand and supply of characteristics that give a house its value.


House Price Residential Mobility Housing Consumption Spatial Durbin Model Hedonic Regression 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Bowden RJ (1992) Competitive selection and market data: the mixed-index problem. Rev Econ Stud 59:625–633CrossRefGoogle Scholar
  2. Brasington DM (2002) Edge versus center: finding common ground in the capitalization debate. J Urban Econ 52:524–541CrossRefGoogle Scholar
  3. Brasington DM, Hite D (2005) Demand for environmental quality: a spatial hedonic analysis. Reg Sci Urban Econ 35:57–82CrossRefGoogle Scholar
  4. Brasington DM, Hite D (2008) A mixed index approach to identifying hedonic price models. Reg Sci Urban Econ 38:271–284CrossRefGoogle Scholar
  5. Brown JN, Rosen HS (1982) On the estimation of structural hedonic price models. Econometrica 50:765–768CrossRefGoogle Scholar
  6. Brueckner JK (2011) Lectures on urban economics. MIT Press, CambridgeGoogle Scholar
  7. Cheshire P, Sheppard S (1998) Estimating the demand for housing, land, and neighbourhood characteristics. Oxford Bull Econ Stat 60:357–382CrossRefGoogle Scholar
  8. Clark WAV, Davies-Withers S (1999) Changing jobs and changing houses: mobility outcomes of employment transitions. J Reg Sci 39:653–673CrossRefGoogle Scholar
  9. Clark WAV, van Lierop WFJ (1986) Residential mobility and household location modelling. In: Nijkamp P (ed) Handbook of regional and urban economics, vol 1, Regional economics. North-Holland, Amsterdam, pp 97–132Google Scholar
  10. Dieleman FM (2001) Modelling residential mobility: a review of recent trends in research. J Hsg Built Environment 16:249–265CrossRefGoogle Scholar
  11. Ekeland I, Heckman JJ, Nesheim L (2002) Identifying hedonic models. Am Econ Assoc Papers Proc 92:304–309CrossRefGoogle Scholar
  12. Epple D, Sieg H (1999) Estimating equilibrium models of local jurisdictions. J Polit Econ 107:645–681CrossRefGoogle Scholar
  13. Faggian A, McCann P, Sheppard S (2007) Some evidence that women are more mobile than men: gender differences in U.K. graduate migration behavior. J Reg Sci 47:517–539CrossRefGoogle Scholar
  14. Ferreira F (2010) You can take it with you: proposition 13 tax benefits, residential mobility, and willingness to pay for housing amenities. J Pub Econ 94:661–673CrossRefGoogle Scholar
  15. Fischer MM, Aufhauser E (1988) Housing choice in a regulated market. A nested multinomial logit analysis. Geogr Anal 20:47–69CrossRefGoogle Scholar
  16. Fischer MM, Getis A (2010) Handbook of applied spatial analysis. Software tools, methods and applications. Springer, Berlin/Heidelberg/New YorkCrossRefGoogle Scholar
  17. Gatzlaff DH, Ling DC (1994) Measuring changes in local house prices: an empirical investigation of alternative methodologies. J Urban Econ 35:221–244CrossRefGoogle Scholar
  18. Gill HL (1983) Changes in city and suburban house prices during a period of expected school desegregation. Southern Econ J 50:169–184CrossRefGoogle Scholar
  19. Hanushek E, Quigley J (1978) An explicit model of intrametropolitan mobility. Land Econ 54:411–429CrossRefGoogle Scholar
  20. Haurin DR, Hendershott PF (1991) House price indexes: issues and results. AREUEA J 19:259–269CrossRefGoogle Scholar
  21. Hoehn JP, Berger MC, Blomquist GC (1987) A hedonic model of interregional wages, rents, and amenity values. J Reg Sci 27:605–620CrossRefGoogle Scholar
  22. Kan K (2007) Residential mobility and social capital. J Urban Econ 61:436–457CrossRefGoogle Scholar
  23. Lacombe D (2004) Does econometric methodology matter? An analysis of public policy using spatial econometric techniques. Geogr Anal 36:105–118Google Scholar
  24. LeSage J, Fischer MM (2010) Spatial econometric methods for modeling origin-destination flows. In: Fischer MM, Getis A (eds) Handbook of applied spatial analysis. Springer, Berlin/Heidelberg/New York, pp 409–433CrossRefGoogle Scholar
  25. LeSage J, Pace RK (2010) Introduction to spatial econometrics. CRC Press, Boca RatonGoogle Scholar
  26. Oates WE (1969) The effects of property taxes and local public spending on property values: an empirical study of tax capitalization and the Tiebout hypothesis. J Polit Econ 77:957–971CrossRefGoogle Scholar
  27. Orr LL (1968) The incidence of differential property taxes on urban housing. Nat Tax J 21:253–262Google Scholar
  28. Partridge MD, Rickman DS (2003) The waxing and waning of regional economies: the chicken-egg question of jobs versus people. J Urban Econ 53:76–97CrossRefGoogle Scholar
  29. Rabe B, Taylor M (2010) Residential mobility, quality of neighbourhood and life course events. J R Stat Soc Ser A Stat Soc 173:531–555CrossRefGoogle Scholar
  30. Rappaport J (2007) Moving to nice weather. Reg Sci Urban Econ 37:375–398CrossRefGoogle Scholar
  31. Rosen S (1974) Hedonic prices and implicit markets: product differentiation in pure competition. J Polit Econ 82:34–55CrossRefGoogle Scholar
  32. Rossi PH (1955) Why families move: a study in the social psychology of urban residential mobility. Free Press, GlencoeGoogle Scholar
  33. Tiebout C (1956) A pure theory of local expenditures. J Polit Econ 64:416–424CrossRefGoogle Scholar
  34. Voith R (1991) Capitalization of local and regional attributes into wages and rents: differences across residential, commercial, and mixed-use communities. J Reg Sci 31:127–145CrossRefGoogle Scholar
  35. Winstanley A, Thorns DC, Perkins HC (2002) Moving house, creating home: exploring residential mobility. Housing Stud 17:813–832CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of CincinnatiCincinnatiUSA

Personalised recommendations