A Spatial Look at Housing Boom and Bust Cycles

David Genesove, Lu Han

Chapter in NBER book Housing and the Financial Crisis (2013), Edward L. Glaeser and Todd Sinai, editors (p. 105 - 141)
Conference held November 17-18, 2011
Published in August 2013 by University of Chicago Press
© 2013 by the National Bureau of Economic Research

This chapter investigates spatial variations in prices over the boom-bust cycle of housing markets both within and across urban areas. It considers the role of a new supply proxy--commuting time--in explaining the within-market and cross-market variation in how house price varies with stages of the market cycle. The within-market analysis used self-reported home values from the 2005 to 2010 American Community Survey samples to examine the changing relationship between housing price growth and commuting time. Consistent with the notion that buildings are easier to build at the city edge, the study finds that the price gradient became flatter in the bust, implying prices fell more in the center than at the city's edge. The analysis of housing price growth across markets shows that when prices increase overall, prices rise more in metropolitan statistical areas (MSAs) with greater average commuting time, even when controlling for regulatory and topological supply constraint proxies previously used in the literature.

This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
Order from

This paper was revised on August 27, 2012

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this chapter also downloaded these:
Sinai House Price Moments in Boom-Bust Cycles
Haughwout, Peach, Sporn, and Tracy The Supply Side of the Housing Boom and Bust of the 2000s
Glaeser, Gottlieb, and Gyourko Can Cheap Credit Explain the Housing Boom?
Keys, Piskorski, Seru, and Vig Mortgage Financing in the Housing Boom and Bust
Glaeser and Sinai Postmortem for a Housing Crash
NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us