ECONOMIC PERSPECTIVES ON THE STRUCTURE OF LOCAL HOUSING SYSTEMS

This paper examines the notions of market and sub-market in the contex t of housing. It first proposes specific definitions and then clarifie s why the general characteristics of housing are likely to generate su b-markets and why these will tend to exhibit disequilibrium of differe nt forms and durations. These sub-markets may be sectoral or spatial, or indeed both. Empirical evidence on the existence of sub-markets is put forward with respect to certain Scottish cities, using hedonic and other techniques. Finally, the implications of the existence of sub-m arkets for the stability of local housing systems are assessed.