Spatial Distribution of Housing Liquidity

Francisco Amaral, Toth Mark and Jonas Zdrzalek
Additional contact information
Francisco Amaral: University of Zurich - Department Finance; Swiss Finance Institute
Toth Mark: University of Bonn - Department of Economics
Jonas Zdrzalek: Kiel Institute for the World Economy - IFW

No 26-12, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: This paper examines the relationship between location, liquidity, and prices in housing markets. We construct spatial datasets for German and U.S. cities and show that liquidity and prices decline with distance to the city center. To rationalize these patterns, we develop a spatial model of housing search. Location preferences concentrate buyers in central areas, generating tighter markets that are more liquid and command higher prices. Counterfactuals show that increasing search efficiency raises welfare and prices, especially in peripheral areas. Our findings highlight the importance of demand-side preferences and market tightness for understanding liquidity and asset prices.

Keywords: Housing Liquidity; Housing Prices; Cities; Spatial Equilibrium; Housing Demand; Asset Pricing (search for similar items in EconPapers)
Pages: 131 pages
Date: 2026-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6071627 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2612

Access Statistics for this paper

More papers in Swiss Finance Institute Research Paper Series from Swiss Finance Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().