Abstract:
This paper investigates single-family residential development for housing market equilibriums by using microeconomic theory and disaggregate spatial data. A logit model and notions of price competition are used to simulate household location choices in six scenarios, with either one or multiple employment centers and with low, medium, and high value-of-travel-time assumptions. Consistent with bid–rent theory, housing market equilibrium for each scenario was reached in an iterative fashion. The spatial allocation of new households in the region of Austin, Texas, illustrated the potential shape of things to come, with endogenously determined home prices and demographic distributions.
