The market for real estate brokerage services in low- and high-income neighborhoods: A 6 city study

Yelowitz, Aaron and Scott, Frank and Beck, Jason (2011): The market for real estate brokerage services in low- and high-income neighborhoods: A 6 city study.

Abstract

We examine the market structure for real estate brokerage services across six large metropolitan areas, by collecting more than 300,000 real estate listings and computing the Herfindahl-Hirschman Index (HHI) for each neighborhood. When we divide neighborhoods based on income, house value, and race, we find no evidence of redlining; that is, the market structure for brokerage services is at least as competitive in less advantaged neighborhoods as it is in more advantaged ones.

• Item Type: MPRA Paper
• Language: English
• Keywords: HHI; real estate brokerage competition; Herfindahl-Hirschman Index; redlining
• Subjects: L - Industrial Organization > L8 - Industry Studies: Services > L85 - Real Estate Services

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