scholarly journals Housing Supply in the Presence of Informality

2021 ◽  
Author(s):  
Ricardo Guedes ◽  
Felipe Iachan ◽  
Marcelo Sant'Anna
Keyword(s):  
Metropolitan Areas ◽  
Demographic Data ◽  
Housing Prices ◽  
Housing Supply ◽  
Informal Housing ◽  
Supply Elasticity ◽  
Downward Pressure ◽  
Housing Supply Elasticity ◽  
City Model ◽  
Identification Strategy

We study housing supply in markets where informal housing is common. Using a combination of census and satellite data, we estimate housing supply for more than 90 metropolitan areas in Brazil. We find that widespread informal housing increases the housing supply elasticity, partially offsetting the downward pressure of geographical constraints. Our empirical approach is guided by a monocentric city model that includes informal housing. Our identification strategy relies on the use of two novel instruments, combining demographic data and public land ownership. We use the supply elasticity estimates to forecast the response of future housing prices to natural population growth.

International Real Estate Review

2015 ◽  
Vol 18 (3) ◽  
pp. 383-428
Author(s):  
Charles Leung ◽  
Keyword(s):  
Hong Kong ◽  
Housing Prices ◽  
Housing Price ◽  
Price Volatility ◽  
The United States ◽  
Preliminary Evidence ◽  
Housing Supply ◽  
Supply Elasticity ◽  
International Attention ◽  
Housing Supply Elasticity

Housing prices in Hong Kong have gained international attention. This study suggests that the housing supply may be insufficient. Consistent with previous studies, we confirm that merely increasing the land supply may not increase the housing supply. We also find preliminary evidence for widening income inequality, which, when combined with unavailability, can lead to unaffordability in the housing market. Given the current housing supply elasticity with respect to price, Hong Kong is not more volatile than major cities in the United States. Thus, by improving housing availability and thereby increasing housing supply elasticity, this could effectively decrease housing price volatility.

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