The article puts forward the argument that housing market and property value models currently lack an adequate methodological basis. In order to improve the conceptual framework of the economic analysis of housing market behaviour, necessary institutional parameters need to be included. This, however, causes further difficulties, because some of the institutions are predominantly informal and operate at the cognitive level of market behaviour. While the problem of overstrict assumptions at the aggregate level has been tackled successfully, the next fundamental problem to solve is how to disaggregate feasibly the demand-side analysis. One possibility for this is to generate preference profiles of actors with different institutional backgrounds, using a multicriteria decision technique such as the analytical hierarchy process (AHP).
Get full access to this article
View all access options for this article.
References
1.
Ball, M.J. (1973) Recent empirical work on the determinants of relative house prices, UrbanStudies, 10, pp. 213-233.
2.
Ball, M. (1998) Institutions in British property research: a review, UrbanStudies, 35(9), pp.1501-1517.
3.
Ball, M.J. and Srinivasan, V.C. (1994) Using the analytic hierarchy process in house selection, Journal of Real Estate Finance andEconomics, 9, pp. 69-85.
4.
Bender, A., Din, A., Favarger, P. ET AL. (1997) An analysis of perceptions concerning the environmental quality of housing in Geneva, Urban Studies , 34(3), pp. 503-513.
5.
Bible, D.S. and Hsieh, C.-H. (1996) Applications of geographic information systems for the analysis of apartment rents, Journal of Real Estate Research, 12(1), pp. 79-88.
6.
Bourassa, S.C. (1993) The rent gap debunked, Urban Studies , 30(10), pp. 1731-1744.
7.
Brandsen, T. (2001) Bringing actors back in: towards an institutional perspective, Housing, Theory and Society, 18, pp. 2-14.
8.
Coleman, J. (1990) Foundations of Social Theory. Cambridge, MA: Harvard University Press.
9.
Coolen, H. and Hoekstra, J. (2001) Values as determinants of preferences for housing attributes. Journal of Housing and theBuilt Environment, 16, pp. 285-306.
10.
D'Arcy, E. and Keogh, G. (1998) Territorial competition and property market process: an exploratory analysis, UrbanStudies, 35(8), pp.1215-1230.
11.
D'Arcy, E. and Keogh, G. (2002) The market context of property development activity , in: S. Guy, and J. Henneberry, (Eds) Development and Developers: Perspectives on Property, pp. 19-34. Oxford: Blackwell Publishing and RICS Foundation.
12.
Dent, P. and Temple, M. (1998) Economic value-a methodological dilemma?, in: 'The Cutting Edge 1998'—Conference Proceedings. London: RICS.
13.
Diaz III, J., (1993) Science, engineering and the discipline of real estate, Journal of Real Estate Literature, 1(2), pp. 183-195.
14.
Diaz III, J., (1998) The first decade of behavioral research in the discipline of property, in: 'The Cutting Edge 1998'—Conference Proceedings. London: RICS.
15.
Dubin, R., Pace, K.R. and Thibodeau, T.G. (1999) Spatial autoregression techniques for real estate data, Journal of Real Estate Literature, 7(1), pp. 79-95.
Goetgeluk, R. (1997) Bomen over wonen: woningmarktonderzoek met beslissingsbomen. Unpublished PhD thesis, Utrecht Universiteit.
18.
Greef, J.H. De (2001) The institutional analysis of real estate markets: the economic value of land. Paper presented at the 8th European Real Estate Society Conference, Alicante , June.
19.
Healey, P. (1991) Models of the development process: a review, Journal of Property Research, 8, pp. 219-238.
20.
Healey, P. (1998) Regulating property development and the capacity of the development industry, Journal of Property Research , 15, pp. 219-238.
21.
Healey, P. and Barrett, S. (1990) Structure and agency in land and property development processes: some ideas for research, UrbanStudies, 27(1), pp. 89-104.
22.
Isaksson, H.R. (1997) An empirical analysis of the determinants of the value of vacant land, Journal of Real Estate Research, 13(2), pp.103-114.
23.
Jaffe, A.J. (1996) On the role of transaction costs and property rights in housing markets, Housing Studies, 11(3), pp. 425-434.
24.
Jaffe, A.J. (1998) Housing and real estate economics: an overview , in: A. J. H. Smets, and T. Trœrup (Eds) Housing in Europe: Analysing Patchworks, pp. 13-19. Utrecht /Hørsholm : Utrecht University /Danish Building Research Institute.
25.
Jaffe, A.J. and Louziotis, D., JR. (1996) Property rights and economic efficiency: a survey of institutional factors, Journal of Real Estate Literature, 4, pp. 137-157.
26.
Kauko, T. (2001) Combining theoretical approaches: the case of urban land value and housing market dynamics, Housing, Theory and Society, 18(3/4), pp. 167-173.
27.
Kauko, T. (2002) Modelling the locational determinants of house prices: neural network and value tree approaches. Utrecht : Labor Grafimedia.
28.
Kauko, T. (2003) Residential property value and locational externalities: on the complementarity and substitutability of approaches, Journal of Property Investment andFinance, 21(3), pp.250-270.
29.
Kauko, T. (forthcoming) Sign value, topophilia and the locational component in property prices, Environment and Planning A.
30.
Kooreman, P. and Soetevent, A. (2002) A discrete choice model with social interactions; an analysis of high school teen behavior. Unpublished manuscript, University of Groningen.
31.
Krabben, E. Van Der and Lambooy, J.G. (1993) A theoretical framework for the functioning of the Dutch property market, UrbanStudies, 30(8), pp. 1381-1397.
32.
Lake, I.R.Lovett, A.A., Bateman, I.J. and Langford, I.H. (1998) Modelling environmental influences on property prices in an urban environment, Computers, Environment and Urban Systems, 22(2), pp. 121-136.
33.
Lawson, T. (1997) Economics and Reality. London : Routledge.
34.
Lentz, G.H. and Wang, K. (1998) Residential appraisal and the lending process: a survey of issues, Journal of Real Estate Research, 15(1/ 2), pp. 11-39.
35.
Maclennan, D. (1977) Some thoughts on the nature and purpose of house price studies, UrbanStudies, 14, pp. 59-71.
36.
Maclennan, D. (1982) Housing Economics. New York : Longman.
37.
Macleod, G. (2001) Beyond soft institutionalism: accumulation, regulation, and their geographical fixes, Environment and Planning A, 33, pp.1145-1167.
38.
Macleod, G. and Goodwin, M. (1999) Reconstructing an urban and regional political economy: on the state, politics, scale, and explanation, Political Geography, 18, pp. 697-730.
39.
Maher, C. (1989) Information, intermediaries and sales strategy in an urban housing market: the implications of real estate auctions in Melbourne, UrbanStudies, 26(5), pp. 495-509.
40.
Miller, N.G. (1982) Residential property hedonic pricing models: a review, in: C.F. SIRMANs (Ed.) Urban Housing Markets and Property Valuation, pp. 31-56. Greenwich, CT: Jai Press Inc..
41.
Murie, A. (1998) Uncertainty and fragmentation: social aspects of housing studies, in: A. J. H. Smets, and T. Trœrup (Eds) Housing in Europe: Analysing Patchworks, pp. 21-32. Utrecht/ Hørsholm: Utrecht University/ Danish Building Research Institute.
42.
Pace, R.K., Barry, R. and Sirmans, C.F. (1998b) Spatial statistics and real estate, Journal of Real Estate Finance andEconomics, 17(1), pp. 5-13.
43.
Pace, R.K., Barry, R., Clapp, J.M. and Rodriguez, M. (1998a) Spatiotemporal autoregressive models of neighborhood effects, Journal of Real Estate Finance andEconomics, 17(1), pp. 15-33.
44.
Pavlov, A.D. (2000) Space-varying regression coefficients: a semi-parametric approach applied to real estate markets, Real Estate Economics , 28(2), pp. 249-283.
45.
Perry, G.M. and Robinson, L.J. (2001) Evaluating the influence of personal relationships on land sale prices: a case study in Oregon, Land Economics , 77(3), pp. 385-398.
46.
Pogodzinski, J.M. and Sass, T.R. (1991) Measuring the effects of municipal zoning regulations: a survey, Urban Studies, 28(4), pp. 597-621.
47.
Rodriguez, M., Sirmans, C.F. and Marks, A. (1995) Using geographic information systems to improve real estate analysis, Journal of Real Estate Research, 10(2), pp. 163-173.
48.
Saaty, T.L. (1990) How to make a decision: the analytic hierarchy process, EuropeanJournal of Operational Research, 48, pp. 9-26.
49.
Sayer, A. (1985) Realism and geography, in: R. J. Johnston, (Ed.) The Future ofGeography , pp. 159-173. London: methuin.
50.
Weston, R. (2002) Towards a realist theory of market sector housing production in England. Paper presented at the ENHR Conference Workshops, Vienna, July.
51.
Whitehead, C.M.E. (1999) Urban housing markets: theory and policy, in: E. S. Mills and P. Cheshire, (Eds) Handbook of Regional and Urban Economics , Vol. 3, pp. 1559-1594. Amsterdam : Elsevier Science BV.
52.
Williamson, O.E. (1990) A comparison of alternative approaches to economic organization, Journal of Institutional and Theoretical Economics , 146(1), pp. 61-71.
53.
Wyatt, P. (1996a) The development of a property information system for valuation using a geographical information system (GIS), Journal of Property Research, 13, pp. 317-336.
54.
Wyatt, P. (1996b) Using a geographical information system for property valuation, Journal of Property Valuation and Investment, 14(1), pp.67-79.
55.
Wyatt P.J. (1997) The development of a GISbased property information system for real estate valuation. International Journal of Geographical Information Science, 11(5), pp. 435-450.
56.
Zahedi, F. (1986) The analytic hierarchy process-a survey of the method and its applications, Interfaces, 16(4), pp. 96-108.
