This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Journal: Economic Policy
  4. November 2013
  5. Superstar Cities

American Economic Journal:
Economic Policy

ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)

Superstar Cities

  • Joseph Gyourko
  • Christopher Mayer
  • Todd Sinai
American Economic Journal: Economic Policy
vol. 5, no. 4, November 2013
(pp. 167–99)
Download Full Text PDF

Abstract

We document large long-run differences in average house price appreciation across metropolitan areas over the past 50 years, and show they can be explained by an inelastic supply of land in some unique locations combined with an increasing number of highincome households nationally. The resulting high house prices and price-to-rent ratios in those "superstar" areas crowd out lower income households. The same forces generate a similar pattern among municipalities within a metropolitan area. These facts suggest that disparate local house price and income trends can be driven by aggregate demand, not just changes in local factors such as productivity or amenities.

Citation

Gyourko, Joseph, Christopher Mayer, and Todd Sinai. 2013. "Superstar Cities." American Economic Journal: Economic Policy, 5 (4): 167–99. DOI: 10.1257/pol.5.4.167

Additional Materials

JEL Classification

  • R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
  • R31 Housing Supply and Markets
  • R52 Regional Government Analysis: Land Use and Other Regulations
There are no comments for this article.
Login to Comment