Examining the Effect of Squatter Settlements in the Evolution of Spatial Fragmentation in the Housing Market of the City of Buenos Aires by Using Geographical Weighted Regression

A Federico Ogas-Mendez,Yuzuru Isoda

doi:10.3390/ijgi10060359

A Federico Ogas-Mendez, Yuzuru Isoda

Open Access

https://doi.org/10.3390/ijgi10060359

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Abstract

The spatial fragmentation in the housing market and the growth of squatter settlements are characteristic for the metropolitan areas in developing countries. Over the years, in large cities, these phenomena have been promoting an increase in the spatial concentration of poverty. Therefore, this study examined the relationship between the squatter settlement growth and spatial fragmentation in the housing market of Buenos Aires. By performing a spatiotemporal analysis using geographically weighted regression in the house prices for the years 2001, 2010, and 2018, the results showed that while squatter settlements had a strong negative effect on house prices, the affected areas shifted over time. Our findings indicate that it is not the growth of the squatter settlement that causes spatial fragmentation, but rather the widening income disparities and further segregation of low-income households. However, squatter settlements determined the spatial demarcation of fragmented housing market by attracting low-income households to surrounding low house price areas.

Highlights

In the past decades, many metropolitan areas have experienced the continuity of their traditional urbanization patterns, but in parallel, new trends associated with real estate speculation have emerged [1]
The spatial econometric estimates suggest that house prices are negatively impacted by spatial fragmentation at low fragmentation levels, yet there is a positive price relationship at high fragmentation levels [7]
This article aims to contribute to this knowledge base by assessing how squatter settlements are one of the causes of socio-spatial fragmentation and their dynamic effect on house prices over time

Summary

Introduction

Many metropolitan areas have experienced the continuity of their traditional urbanization patterns, but in parallel, new trends associated with real estate speculation have emerged [1]. From the 1990s, the “new urban policy” approach has promoted deregulation of private investments into the real estate market This deregulation led to an increased number of decisions in the private sector regarding urban change and development [2,3]. This policy is related to large-scale redevelopment featuring commodity housing, public services, and commercial and office space. It includes the city center redevelopment in response to restructuring the processes associated with transforming of the production and demand in different scales combining physical upgrading with socioeconomic development objectives by replacing the more traditional redistribution-driven approaches [3]. The fragmentations expose the rise of inequalities, suggesting breakup of neighborhood types, which culminates in the spatial segregation of social groups

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