[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ipe/ipetds/0201.html
   My bibliography  Save this paper

Residential Vacancy In City Center: The Case Of São Paulo

Author

Listed:
  • Vanessa Gapriotti Nadalin
Abstract
São Paulo’s metropolitan area is one of the largest urban spaces in the world. As it happens with any other large metropolitan area, understanding its structure, problems and dynamics is not a simple task. The structure of cities has been studied by urban economics ever since von Thünen’s land use theory was adapted to urban contexts. Research on property and housing markets have followed a related but different approach. On the one hand, housing markets have been modeled with emphasis on the specific features of properties such as durability, heterogeneity, and construction costs. On the other hand, research on real estate finance has been developing and applying a variety of valuation methods, focusing on the supply and demand adjusting mechanisms and considering properties as assets. These three areas of investigation have not always been connected in a systematic manner. Yet, we argue that there is a case for integrating them due to their intrinsic spatial dimension. In the past decades, when the São Paulo became the national manufacturing centre, it has experienced great population growth. Many problems have emerged, especially those connected with housing such as illegal slums, flophouses, informal settlements, squatting and homelessness. This significant housing deficit indicates the need to search for alternatives in the provision of good quality housing. At the same time, there is a general spatial pattern of residential vacancy: high vacancies in central areas and low vacancies in suburbs. The city centre location advantages and urban amenities are a misuse of scarce resources. This paper attempts to contribute to this debate through an empirical analysis of the determinants of residential vacancy rates in São Paulo’s metropolitan area. We use a panel of census tract level data for the years 2000 and 2010 combining standard spatial econometric methods with hedonic modelling. Our results suggest that there are two main groups of determinants: one related to local characteristics of housing markets and another constituted by individual building features. We also estimate the city historical centre determinants separately from those of the suburbs, finding consistent differences.

Suggested Citation

  • Vanessa Gapriotti Nadalin, 2015. "Residential Vacancy In City Center: The Case Of São Paulo," Discussion Papers 0201, Instituto de Pesquisa Econômica Aplicada - IPEA.
    • Handle: RePEc:ipe:ipetds:0201
    as

    Download full text from publisher

    File URL: http://www.ipea.gov.br/portal/images/stories/PDFs/TDs/ingles/dp_201.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    2. Patric H. Hendershott & Bryan D. MacGregor & Raymond Y.C. Tse, 2002. "Estimation of the Rental Adjustment Process," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(2), pages 165-183.
    3. Gabriel, Stuart A. & Nothaft, Frank E., 2001. "Rental Housing Markets, the Incidence and Duration of Vacancy, and the Natural Vacancy Rate," Journal of Urban Economics, Elsevier, vol. 49(1), pages 121-149, January.
    4. Sweeney, James L., 1974. "A commodity hierarchy model of the rental housing market," Journal of Urban Economics, Elsevier, vol. 1(3), pages 288-323, July.
    5. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January.
    6. Can, Ayse, 1992. "Specification and estimation of hedonic housing price models," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 453-474, September.
    7. Miceli, Thomas J. & Sirmans, C.F., 2013. "Efficiency rents: A new theory of the natural vacancy rate for rental housing," Journal of Housing Economics, Elsevier, vol. 22(1), pages 20-24.
    8. Jan K. Brueckner & Stuart S. Rosenthal, 2009. "Gentrification and Neighborhood Housing Cycles: Will America's Future Downtowns Be Rich?," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 725-743, November.
    9. Peter Englund & Åke Gunnelin & Patric H. Hendershott & Bo Söderberg, 2008. "Adjustment in Property Space Markets: Taking Long‐Term Leases and Transaction Costs Seriously," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 36(1), pages 81-109, March.
    10. Dubin, Robin A., 1992. "Spatial autocorrelation and neighborhood quality," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 433-452, September.
    11. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    12. David M. Blank & Louis Winnick, 1953. "The Structure of the Housing Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 67(2), pages 181-208.
    13. Rosenthal, Stuart S., 2008. "Old homes, externalities, and poor neighborhoods. A model of urban decline and renewal," Journal of Urban Economics, Elsevier, vol. 63(3), pages 816-840, May.
    14. Diniz, Bernardo Palhares Campolina & Diniz, Clélio Campolina, 2006. "A região metropolitana de São Paulo: reestruturação, reespecialização e novas funcões," Oficina de la CEPAL en Brasilia (Estudios e Investigaciones) 28393, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    15. Goodman, Allen C. & Thibodeau, Thomas G., 1998. "Housing Market Segmentation," Journal of Housing Economics, Elsevier, vol. 7(2), pages 121-143, June.
    16. Patric H. Hendershott & Colin M. Lizieri & George A. Matysiak, 1999. "The Workings of the London Office Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(2), pages 365-387, June.
    17. Kapoor, Mudit & Kelejian, Harry H. & Prucha, Ingmar R., 2007. "Panel data models with spatially correlated error components," Journal of Econometrics, Elsevier, vol. 140(1), pages 97-130, September.
    18. Rosen, Kenneth T & Smith, Lawrence B, 1983. "The Price-Adjustment Process for Rental Housing and the Natural Vacancy Rate," American Economic Review, American Economic Association, vol. 73(4), pages 779-786, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ha Thi Khanh Van & Tran Vinh Ha & Takumi Asada & Mikiharu Arimura, 2022. "Vacancy Dwellings Spatial Distribution—The Determinants and Policy Implications in the City of Sapporo, Japan," Sustainability, MDPI, vol. 14(19), pages 1-26, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vanessa Nadalin & Danilo Igliori, 2017. "Empty spaces in the crowd. Residential vacancy in São Paulo’s city centre," Urban Studies, Urban Studies Journal Limited, vol. 54(13), pages 3085-3100, October.
    2. Duranton, Gilles & Puga, Diego, 2015. "Urban Land Use," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 467-560, Elsevier.
    3. McKinnish, Terra & Walsh, Randall & Kirk White, T., 2010. "Who gentrifies low-income neighborhoods?," Journal of Urban Economics, Elsevier, vol. 67(2), pages 180-193, March.
    4. Garcia-López, Miquel-Àngel & Moreno-Monroy, Ana I., 2018. "Income segregation in monocentric and polycentric cities: Does urban form really matter?," Regional Science and Urban Economics, Elsevier, vol. 71(C), pages 62-79.
    5. Rosenthal, Stuart S. & Ross, Stephen L., 2015. "Change and Persistence in the Economic Status of Neighborhoods and Cities," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1047-1120, Elsevier.
    6. Waights, Sevrin, 2018. "Does gentrification displace poor households? An ‘identification-via-interaction’ approach," LSE Research Online Documents on Economics 88691, London School of Economics and Political Science, LSE Library.
    7. Takaaki Takahashi, 2017. "Determination of neighbourhood housing amenities: Asymmetric effects of consumers’ choices and multiple equilibria," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 555-570, August.
    8. Zeno Adams & Roland Füss, 2012. "Disentangling the Short and Long-Run Effects of Occupied Stock in the Rental Adjustment Process," The Journal of Real Estate Finance and Economics, Springer, vol. 44(4), pages 570-590, May.
    9. Stuart S. Rosenthal, 2014. "Are Private Markets and Filtering a Viable Source of Low-Income Housing? Estimates from a "Repeat Income" Model," American Economic Review, American Economic Association, vol. 104(2), pages 687-706, February.
    10. Philippe Thalmann, 2012. "Housing Market Equilibrium (almost) without Vacancies," Urban Studies, Urban Studies Journal Limited, vol. 49(8), pages 1643-1658, June.
    11. Hans R. A. Koster & Jos N. van Ommeren & Piet Rietveld, 2016. "Historic amenities, income and sorting of households," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 203-236.
    12. Patric H. Hendershott & Bryan D. MacGregor & Raymond Y.C. Tse, 2002. "Estimation of the Rental Adjustment Process," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(2), pages 165-183.
    13. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    14. Sevrin Waights, 2019. "The preservation of historic districts—is it worth it?," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 433-464.
    15. Raymond Y. C. Tse, 2002. "Estimating Neighbourhood Effects in House Prices: Towards a New Hedonic Model Approach," Urban Studies, Urban Studies Journal Limited, vol. 39(7), pages 1165-1180, June.
    16. JunJie Wu, 2010. "Economic Fundamentals And Urban–Suburban Disparities," Journal of Regional Science, Wiley Blackwell, vol. 50(2), pages 570-591, May.
    17. Modai-Snir, Tal & van Ham, Maarten, 2017. "Structural and Exchange Components in Processes of Neighbourhood Change: A Social Mobility Approach," IZA Discussion Papers 10695, Institute of Labor Economics (IZA).
    18. Mulalic, Ismir & Rouwendal, Jan, 2020. "Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    19. Gabriel, Stuart A. & Nothaft, Frank E., 2001. "Rental Housing Markets, the Incidence and Duration of Vacancy, and the Natural Vacancy Rate," Journal of Urban Economics, Elsevier, vol. 49(1), pages 121-149, January.
    20. Anupam Nanda & Jia-Huey Yeh, 2016. "Reflected Glory Versus Repulsive Envy: How Do the Smiths Feel About the House of the Joneses?," Asian Economic Journal, East Asian Economic Association, vol. 30(3), pages 317-341, September.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipe:ipetds:0201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Fabio Schiavinatto (email available below). General contact details of provider: https://edirc.repec.org/data/ipeaabr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.