The house price gradient: evidence from Italian cities

Elisabetta Manzoli () and Sauro Mocetti
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Elisabetta Manzoli: Banca d'Italia

No 348, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The paper examines the geographical variability in house prices, focusing on the gradient from the center to peripheral areas. The results reveal large price differentials in the main urban areas, even more than those between the Centre-North and South. The higher real estate prices in the centers of urban areas are affected by centripetal pressures from the demand side (also related to the local economic activities) to which supply only partially adjusts. We find that better infrastructures and lower commuting times can, however, bring the suburbs closer to the center and accordingly mitigate the cost of living centrally and the inclination of the gradient. Finally, we find a center-periphery gradient also for incomes, though this is less steep than that of house prices; it follows that the ratio between the value of houses and income is higher in the city center and lower in the periphery.

Keywords: housing prices; agglomeration; mobility; income (search for similar items in EconPapers)
JEL-codes: R14 R30 R41 (search for similar items in EconPapers)
Date: 2016-09
New Economics Papers: this item is included in nep-geo, nep-sog and nep-ure
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The House Price Gradient: Evidence from Italian Cities (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_348_16

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