Testing Estimates of Housing Cost Differences Among US Metropolitan Areas

Testing Estimates of Housing Cost Differences among US Metropolitan Areas

Urban Studies Research ◽

10.1155/2015/121978 ◽

2015 ◽

Vol 2015 ◽

pp. 1-13

Author(s):

Todd Easton

Keyword(s):

Census Data ◽

Metropolitan Areas ◽

Housing Cost ◽

Cost Index ◽

Housing Component ◽

Fair Market ◽

Cost Differences ◽

Living Cost

This paper investigates the accuracy of six measures of housing cost differences among US metropolitan areas. Using Census data from 177 metropolitan areas, it tests the measures in two ways. First, it tests the ability of changes in the measures to predict changes in the shelter component of the metropolitan CPI from 1990 to 2000. Second, it tests the ability of the measures themselves to predict a proxy in 2000. A measure based on Fair Market Rents calculated by HUD placed second on the first test but did badly on the second. The housing component of the ACCRA index, a living cost measure frequently used by researchers, performed poorly on both tests. The top performer on both tests was a measure based on the average rent per room for a metropolitan area’s dwellings. Researchers wishing to control for living cost differences among places should consider including it in their living cost index.

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OPTIMAL HOUSING COST ESTIMATES FOR 177 U.S. METROPOLITAN AREAS

Journal of Regional Science ◽

10.1111/j.1467-9787.2012.00777.x ◽

2012 ◽

Vol 52 (3) ◽

pp. 469-485 ◽

Cited By ~ 2

Author(s):

Todd Easton

Keyword(s):

Metropolitan Areas ◽

Housing Cost ◽

Cost Estimates

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Urban Transport Expansions and Changes in the Spatial Structure of U.S. Cities: Implications for Productivity and Welfare

Review of Economics and Statistics ◽

10.1162/rest_a_00855 ◽

2020 ◽

Vol 102 (5) ◽

pp. 929-945 ◽

Cited By ~ 2

Author(s):

Nathaniel Baum-Snow

Keyword(s):

Metropolitan Areas ◽

Spatial Scales ◽

Central City ◽

Large Fraction ◽

Agglomeration Economies ◽

Urban Transport ◽

Housing Cost ◽

Housing Production ◽

Factor Reallocation ◽

Period Model

Each new radial highway serving large U.S. metropolitan areas decentralized 14% to 16% of central city working residents and 4% to 6% of jobs in the 1960–2000 period. Model calibrations yield implied elasticities of central city total factor productivity to central city employment relative to suburban employment of 0.04 to 0.09, meaning a large fraction of agglomeration economies operates at submetropolitan-area spatial scales. Each additional highway causes central city income net of commuting costs to increase by up to 2.4% and housing cost to decline by up to 1.3%. Factor reallocation toward land in housing production generates the plurality of the population decentralization caused by new highways.

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