Diffusive Nature of Housing Prices

Antoine-Cyrus Becharat, Michael Benzaquen () and Jean-Philippe Bouchaud ()
Additional contact information
Antoine-Cyrus Becharat: LadHyX - Laboratoire d'hydrodynamique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique
Michael Benzaquen: LadHyX - Laboratoire d'hydrodynamique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique
Jean-Philippe Bouchaud: Académie des sciences [Paris, France], CFM - Capital Fund Management, X - École polytechnique - IP Paris - Institut Polytechnique de Paris

Post-Print from HAL

Abstract: We analyze the French housing market prices in the period 1970-2022, with high-resolution data from 2018 to 2022. The spatial correlation of the observed price field exhibits logarithmic decay characteristic of the twodimensional random diffusion equationlocal interactions may create long-range correlations. We introduce a stylized model, used in the past to model spatial regularities in voting patterns, that accounts for both spatial and temporal correlations with reasonable values of parameters, some fitted on impulse response data. Our analysis reveals that price shocks are persistent in time and their amplitude is strongly heterogeneous in space. Our study quantifies the diffusive nature of housing prices that was anticipated long ago [1, 2], albeit on much restricted, local data sets.

Date: 2025
Note: View the original document on HAL open archive server: https://hal.science/hal-05273330v1
References: Add references at CitEc
Citations:

Published in Physical Review Letters, 2025, 135 (10), pp.107401. ⟨10.1103/f4vr-xdny⟩

Downloads: (external link)
https://hal.science/hal-05273330v1/document (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:hal:journl:hal-05273330

DOI: 10.1103/f4vr-xdny

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().