Yelowitz, Aaron and Scott, Frank and Beck, Jason (2012): The market for real estate brokerage services in low- and high-income neighborhoods: A 6 city study.
This is the latest version of this item.
Download (610kB) | Preview
We examine the market structure for real estate brokerage services across six large metropolitan areas, to see whether low-income neighborhoods or neighborhoods where house prices are low are as well served by real estate professionals as higher income or higher price neighborhoods. We collect more than 300,000 real estate listings and compute the Herfindahl-Hirschman Index (HHI) for each zip code neighborhood in each MSA. When we divide neighborhoods based on income, house value, and race, we find no evidence that access is worse in disadvantaged areas; that is, the market structure for brokerage services is at least as competitive in less advantaged neighborhoods. We also analyze market leaders in the six cities and find that some firms specialize in particular market segments, however.
|Item Type:||MPRA Paper|
|Original Title:||The market for real estate brokerage services in low- and high-income neighborhoods: A 6 city study|
|Keywords:||HHI; real estate brokerage competition; Herfindahl-Hirschman Index; redlining|
|Subjects:||L - Industrial Organization > L8 - Industry Studies: Services > L85 - Real Estate Services|
|Depositing User:||Aaron Yelowitz|
|Date Deposited:||05 Sep 2012 14:03|
|Last Modified:||25 Aug 2016 18:49|
Alwitt, Linda F. and Thomas D. Donley, “Retail Stores in Poor Urban Neighborhoods,” The Journal of Consumer Affairs, Summer 1997, 139-164.
Bayer, Patrick, Marcus D. Casey, Fernando Ferreira, and Robert McMillan, “Price Discrimination in the Housing Market,” National Bureau of Economic Research, Working Paper 18069, May 2012.
Beck, Jason, Frank Scott, and Aaron Yelowitz, “Concentration and Market Structure in Local Real Estate Markets,” Real Estate Economics, Fall 2012, 422-460.
Berkovec, James A., Glenn B. Canner, Stuart A. Gabriel, and Timothy H. Hannan, “Race, Redlining, and Residential Mortgage Loan Performance,” Journal of Real Estate Finance and Economics, 1994, 263-294.
Bunce, Harold L. and William J. Reeder, “Guest Editor’s Introduction,” Cityscape: A Journal of Policy Development and Research 9, 2007, 1-3.
Cohen-Cole, Ethan, “Credit Card Redlining,” Review of Economics and Statistics, May 2011, 700-713.
D’Rozario, Denver and Jerome D. Williams, “Retail Redlining: Definition, Theory, Typology and Measurement,” Journal of Macromarketing, 2005, 175-186.
Federal Trade Commission and U.S. Department of Justice, Competition in the Real Estate Brokerage Industry, 2007.
Galster, George, and Erin Godfrey, "By Words and Deeds: Racial Steering by Real Estate Agents in the U.S. in 2000," Journal of the American Planning Association, 2005, 251-268.
Ghent, Andra C., Rubén Hernández-Murillo, and Michael T. Owyang, “Race, Redlining, and Subprime Loan Pricing” (July 12, 2012). Federal Reserve Bank of St. Louis Working Paper No. 2011-033A. Available at SSRN: http://ssrn.com/abstract=2038634
Haurin, Donald R., Christopher E. Herbert, and Stuart S. Rosenthal, “Homeownership Gaps Among Low-Income and Minority Households,” Cityscape: A Journal of Policy Development and Research 9, 2007: 5-51.
Hendel, Igal, Aviv Nevo, and François Ortalo-Magné, “The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com,” American Economic Review, December 2009, 1878-1898.
Herbert, Christopher E. and Eric S. Belsky, “The Homeownership Experience of Low-Income and Minority Households: A Review and Synthesis of the Literature,” Cityscape: A Journal of Policy Development and Research 10, 2008: 5-60.
Hsieh, Chang-Tai and Enrico Moretti, “Can Free Entry be Inefficient? Fixed Commissions and Social Waste in the Real Estate Industry,” Journal of Political Economy, October 2003, 1076-1122.
Kim, Sunwoong, “Race and Home Price Appreciation in Urban Neighborhoods: Evidence from Milwaukee, Wisconsin,” The Review of Black Political Economy, Fall 2000, 9-28.
Munnell, Alicia H., Geoffrey M. B. Tootell, Lynn E. Browne, and James McEneaney, “Mortgage Lending in Boston: Interpreting HMDA Data,” American Economic Review, March 1996, 25-53.
Myers, Caitlin Knowles, “Discrimination and Neighborhood Effects: Understanding Racial Differentials in U.S. Housing Prices,” Journal of Urban Economics, September 2004, 279-301.
Myers, Caitlin Knowles, Grace Close, Laurice Fox, John William Meyer, and Madeline Niemi, “Retail Redlining: Are Gasoline Prices Higher in Poor and Minority Neighborhoods?” Economic Inquiry, July 2011, 795-809.
National Association of Realtors, “2011 NAR Profile of Home Buyers and Sellers,” Ondrich, Jan, Stephen Ross, and John Yinger, “Now You See It, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?” The Review of Economics and Statistics, 2003, 854-873.
Ondrich, Jan, Alex Stricker, and John Yinger, “Do Real Estate Brokers Choose to Discriminate? Evidence from the 1989 Housing Discrimination Study,” Southern Economic Journal, 1998, 880-901.
Ong, Paul M. and Michael A. Stoll, “Redlining or Risk? A Spatial Analysis of Auto Insurance Rates in Los Angleles,” Journal of Policy Analysis and Management, 2007, 811-829.
Reeder, William, “Guest Editor’s Introduction,” Cityscape: A Journal of Policy Development and Research 10, 2008: 1-3.
Regan, Laureen, "Unfair Discrimination and Homeowners Insurance Availability: An Empirical Analysis," Risk Management and Insurance Review, Spring 2007, 13-31.
Tootell, Geoggrey M. B., “Redlining in Boston: Do Mortgage Lenders Discriminate against Neighborhoods?” Quarterly Journal of Economics, November 1996, 1049-1079.
U.S. Government Accountability Office, Real Estate Brokerage: Factors That May Affect Price Competition, Washington, D.C., 2005.
White, Lawrence J., “The Residential Real Estate Brokerage Industry: What Would More Vigorous Competition Look Like?” New York University Law & Economics Research Paper Series, #06-16, April 2006.
Woodward, Susan E., “A Study of Closing Costs for FHA Mortgages,” Report prepared for U.S. Department of Housing and Urban Development, Office of Policy Development and Research, May 2008.
Yinger, John, “Acts of Discrimination: Evidence from the 1989 Housing Discrimination Study,” Journal of Housing Economics, 1991, 318-346.
Zhao, Bo, Jan Ondrich,and John Yinger, “Why do Real Estate Brokers Continue to Discriminate? Evidence from the 2000 Housing Discrimination Study”, Journal of Urban Economics, 2006, 394–419.
Zupano, Leonard V., and Donald L. Hooks, “The Real Estate Brokerage Market: A Critical Reevaluation,” The Journal of the American Real Estate and Urban Economics Association, 1988, 1–17.
Available Versions of this Item
The market for real estate brokerage services in low- and high-income neighborhoods: A 6 city study. (deposited 28 Dec 2011 20:40)
- The market for real estate brokerage services in low- and high-income neighborhoods: A 6 city study. (deposited 05 Sep 2012 14:03) [Currently Displayed]