Bourassa, S. C., Dröes, M. I., & Hoesli, M. (2024). Housing Market Segmentation: A Finite Mixture Approach. De Economist (Netherlands), 172(4), 291–337. https://doi.org/10.1007/s10645-024-09446-2
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Abstract
This paper investigates the usefulness of adding a discrete choice model to the hedonic model via a finite mixture approach. Our approach leads to different hedonic models for different housing market segments based on household information. As such, the proposed method goes beyond measuring the average price of housing attributes. As a case study, we estimate the finite mixture model for the Miami and Louisville metropolitan areas using information on race, ethnicity, and income from the American Housing Survey. We find that the model outperforms the standard hedonic model or a model with linear interaction terms between demographics and housing characteristics. Moreover, market segmentation is based on a complex combination of race, ethnicity, and income. For Louisville, Black households need 2.5 times higher income than White households to advance to a higher market segment and even at high incomes tend to occupy their own segment. For Miami, low-income, non-Hispanic households live in their own segment even if occupying the same dwelling size as households in other segments.
Keywords
Housing market segmentation; Hedonic model; Finite mixture model; R31; O18; D51
The Washington Center for Real Estate Research has released a new report entitled “The State of the State’s Housing.” This is an inaugural annual report. View the report here.
Professor Steve Bourassa of the Washington Center for Real Estate Research (WCRER) and Runstad Department of Real Estate was quoted in a story entitled “First-time Buyer Affordability at Lowest Point in Four Years” in The Bellingham Herald. Read the full article here.
Professor Steve Bourassa of the Washington Center for Real Estate Research (WCRER) and Runstad Department of Real Estate was quoted in a story entitled “Listings are up, interest rates may come down.” Read the full article here.
Wang, R., & Spicer, J. (2024). “All roads lead to Rome?” Performance evaluation across different types of community land trusts based on a large-scale survey. Journal of Urban Affairs, 1–22. https://doi.org/10.1080/07352166.2024.2371400
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Abstract
Community land trusts (CLTs) seek to keep homes and other urban spaces permanently affordable and community controlled. As their number across the United States has increased, different iterations of the CLT model seem to have proliferated in practice, stoking scholarly debate as to their varying outcomes and benefits. There has, however, been little attempt to empirically measure the relationship between this institutional diversity and outcomes. Applying institutional theory to a national CLT dataset, we identify five main organizational sub-types of CLT: traditional CLTs, start-up CLTs, government-housed CLTs, nonprofits with a CLT/shared equity (SE) program, and adapted CLTs. Statistical tests confirm a high degree of similarity in operational scope, organizational capacity, and performance outcomes across the most prominent sub-types. The limited statistical differences which can be identified are consistent with known CLT and urban institutional development processes. Further studies might seek to determine how consequential such limited differences may be.
Keywords
Community land trust; permanently affordable housing; historical institutionalism; community control; shared equity housing
A cohort of 4 projects were awarded Inspire Funds in April 2023. The report-outs from these projects are described below with a summary of project work and progress. The 2023 cohort of Inspire Fund awardees met with the 2024 cohort of awardees in May 2024 to share their accomplishments, successes, and challenges, and to foster a connection between these research teams as resources to one another. The 2024 cohort has begun their projects and will share their products in 2025….
The CBE Inspire Fund Awardees for the 2024 cycle have been selected! Their project names and team members are outlined below. Title: Mycelium Grow Lab for Student-led Research Team: Gundula Proksch (Associate Professor, Architecture), Tyler Sprague (Associate Professor, Architecture) Title: Exhibition of the works of OUR: Office of (Un)certainty Research Team: Vikram Prakash (Professor, Architecture) Title: Emergence, Resilience, and Future(s) of Urban Informality in Seattle Team: Julie Johnson (Associate Professor, Landscape Architecture), Manish Chalana (Associate Professor, Urban Design and Planning)…
The Washington Center for Real Estate Research (WCRER) has released a white paper entitled “Increasing Washington State’s Residential Development Capacity”, co-authored by WCRER Director Steven Bourassa (also the H. Jon and Judith M. Runstad Endowed Professor and Chair of the Runstad Department of Real Estate) and WCRER Associate Director Mason Virant. WCRER also recently released a report which focuses on the impacts of HB 1923 and HB 2343, legislation enacted in 2019 and 2020 which provide grants to help develop…
Colburn, Gregg, and Clayton Page Aldern. Homelessness Is a Housing Problem: How Structural Factors Explain U.S. Patterns. Oakland: University of California Press, 2022.
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Associate Professor Gregg Colburn in the Runstad Department of Real Estate was cited in the Council of Economic Advisors 2024 Economic Report of the President. Chapter 4 of the report, “Increasing the Supply of Affordable Housing: Economic Insights and Federal Policy Solutions” cites a book from Aldren and Colburn, 2022, entitled “Homelessness Is a Housing Problem: How Structural Factors Explain U.S. Patterns.” (Available here: https:// homelessnesshousingproblem.com/.) Read the report, and see the book from Aldren and Colburn for more information.