- (pp. 167-99)
AbstractWe document large long-run differences in average house price appreciation across metropolitan areas over the past 50 years, and show they can be explained by an inelastic supply of land in some unique locations combined with an increasing number of highincome households nationally. The resulting high house prices and price-to-rent ratios in those "superstar" areas crowd out lower income households. The same forces generate a similar pattern among municipalities within a metropolitan area. These facts suggest that disparate local house price and income trends can be driven by aggregate demand, not just changes in local factors such as productivity or amenities.
CitationGyourko, Joseph, Christopher Mayer, and Todd Sinai. 2013. "Superstar Cities." American Economic Journal: Economic Policy, 5 (4): 167-99. DOI: 10.1257/pol.5.4.167
- R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- R31 Housing Supply and Markets
- R52 Regional Government Analysis: Land Use and Other Regulations
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