Chain-formation in the Owner-Occupied Housing Market

The paper examines the process by which owner‐occupied housing market transactions take place. The objective is to develop a model which can reproduce the slow build‐up of housing chains of connected owner‐occupier sales and purchases. The approach here applies stringent discontinuous preferences over house type and location to develop a computer model which will produce these housing chains. The process derived demonstrates that existing owner‐occupiers spend longer in housing market search than will first‐time buyers or the sellers of new dwellings. The implication that existing owner‐occupiers 'lag' in the housing market is tested on UK housing price data, with results that clearly support this general hypothesis

Business · Chain (unit · Economics · Physics · Housing, Finance, and Neoliberalism